Vale (VALE) 28 Oct 222022 Q3 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to Vale's Conference Call to discuss Third Quarter 2022 Results. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. This call is being simultaneously translated to Portuguese. reminder, be is website available at link. a the recorded, at As Investors will recording on instructions] this being conference and vale.com [Operator the company's available accompanied and website transmitted via slide This the well. is by as call link at is presentation conference also at Internet Investors company's a audio via in audio the relation the slide has and phone. broadcasting The both a chains to transmitted the Internet, few delay via seconds

Vice Litigation safe Reform forward-looking that Spinelli, of Deshnee statements Naidoo, Mr. being Iron and De harbor Mr. mention of could Chief Ms. Salles President, other me Executive Ore; the Securities forward-looking statements Investor and performance that President, Bartolomeo, let proceeding, Actual result comments Vice Executive Officer; Before Finance, Mr. Relations. Vice With factors. from as risks, and market anticipated today president, Act Marcello are Metals. conditions, Base any made XXXX. are Eduardo materially Executive Executive a under differ macroeconomic Pimenta, us of Gustavo in

First, on you to performance. Vale's the questions pleasure over Mr. turn answers. will Bartolomeo. he Eduardo It's third the begin. available and be to presentation proceed after that, XXXX now And call quarter may my Bartolomeo now Mr. Sir, will Eduardo for

I much. very through Good the you're you you Thank like morning, hope start in I'd quarter. guiding everyone. to fine. our accomplishments main

regards stability. million iron In with operational ore, was to significant increase an tons, XX progress of close production We to have XX% made our quarter-over-quarter.

increased will after impacting business, But growing per significantly more production extended later. our In discipline, CX $X.X our on the that improved you inflationary ton. Nickel, maintenance. lag EBITDA. we In sales cost on metals base cost world pressures, Deshnee details production assets While is give remain XX%. facing focused our decreased performance

are we our Low mining. the Carbon strategic to on to our commitments lead agenda, delivering Moving

company Cerrado positioning online and reduce as an is project, to our solutions strategy, our iron transition Our of the and choice Vale We're of footprint. coming V refining do energy further the megatrend. solar partner Sol carbon the

to sustainable sense, products our successfully committed in shaping Onça shareholders phase stay cash expand buyback In of business our of CCMX progress discipline other are into of program. our strengthen carbon resources, was uniqueness to more operations. our our XX in deliver Puma have of technology trucks production mining in and in use tons supported the with of and capital share our to just the We productivity furnace the will by To by In we allocation, transition. The to this Copper returning transition, the mine. to concluded diesel continue capital for allocation. the solutions the nearly low we to Xnd our in assets we lead of On In minerals project Canada, reconstruction energy and investments a to two and essential the our nickel, our We're supply We critical promoting Sudbury. the received we first are Directors. the growing at our electricity making the of mining capacity. value in future, electric approved of Cliff Brazil, Board recently double future.

but to reducing the noise, not communities. our also emission, only are minimizing We cutting impact

of and in to mentioned, is month yards as of will and includes XXX,XXX and a we To July electricity two battery power already enough The will to strategy until this move I supply needs Canadian would Vitória this locomotives houses. [indiscernible]. Solar of city the megawatts capacity be ramp project of Our mines, powered our towards consumption energy, assets Sol vehicles of and operation do our electrify XXXX. further Vale's XX% electricity the energy the XXX of up online project XX Brazil, a big coming has electric Cerrado ports clean in in

We on agenda. our climate are delivering

because But that society. doing crucial are needs sustainability the future we are to of vigilant We because for is mining. the also of

companies leave needed vehicles society the supporting boost key and play global turbines, a warming Our positive Mining the metal will metals technologies industry for global be low transition technologies. significant energy expansion by a solar as for role intensive, legacy. zero expects in addressing mining demand the to to will transition. carbon a The economy of wind these panel, net such electric

the XX to times ones. instance, battery producing For than traditional more requires XX nickel

So, of we critical. have these that. a portfolio very footprint the And batteries carbon distinct is for

and in footprint we Canada lowest have is Our the validating nickel high certification Class third-party COX it. quality X

iron Now moving to ore.

of provide mentioned decarbonize before, different FE What BF-BOF I technologies. in do high largest the route. world over from the As others, in content Carajás clients. the XX% XX% reduce operate our are and help such decarbonization we assets have deposits to emissions for are with to We can solutions we grade which green the developing committed briquettes, projects reserves, we as

represented establishing for jointly Scope steel X the almost mills XX% to plants with startup construction under Our of are first the clients, we of With decarbonize choice to partnership expected the find we signed industry, per that XXXX. And help differentiators, have those a tons are are year. with with Brazil, missions. of our six new of we half capacity solutions clients, million for in is partner our

announce Finally, we September. very proud dam in completed eliminated three that that safety, structures in shifting were to gears I'm the more to upstream have works

declaration have emergency XX% five in to completed upstream removed top program so structures On and in conditions, promised, received have levels this have had emergency safety the XXXX, we of we dams the that, in levels Brazil. As far, dams year, seven dams stability, their Gerais. eliminate of our eliminated their of since tested we are are beginning so DCS, structures which of of removed. of five Minas These

implementing, we materially a reparation well mission fulfilling have are in strategy, our of integral Vale derisked part our way. a to As as quick in fair we

more company. and a commitments to safer are delivering reliable we So on our

The our Base Metals, I of are is the over Thank better Deshnee We a With to her yours, for President be Deshnee. back floor Naidoo will our Q&A Vale. and I you. that, building floor remarks Vice to session. now soon turn

Thank the you, Company. quarter, making nickel like this Zhejiang average our progress Indonesia project to South to production Eduardo on Atlantic. PT achieving would our year Vale Eduardo highlighting we as we metals see start approved towards I'm progress Motor and with the And our to good announce by Huayou continue will which XXX,XXX in XX,XXX morning tons ton on and grow the JV establish Ford have I'm per growth by approval at Puma's happy furnace mentioned, everyone. base to goals. I make Xnd Onça and Cobalt

projects track South officially had project there refurbishment this our CCM activities. we the our at are delivery, on XX% earlier progress opened at III, commissioning we with Looking physical Salobo Mine and month

are revised our also schedule The on VBME next project. We slide with please.

Now looking at the in the quarter. performance

following recovered for at our and corrective both operational furnace SAG one, for specifically and completion in copper, production the we Sossego plant in On the major at PT mill some Vale the Indonesia, rebuilt concluded last and safely quarter. nickel the quarter three side, of maintenance work each both maintenance

to an X,XXX sales, On production quarter. this difference have we the ton nickel

the Harbour port meet scheduled industrial due Salobo port rates. and and we up current end constraints. as revise issues copper also to challenges timing lag to retained date, In HX. trued previously and shipping our quarter availability to We quarter be have Long that at given higher throughput container results our commitments where when Puma, to We conditions. the chain and see in sales. Onça maintenance four, improved at will at operations and were in highlighted supply would our we to already maintenance the increased to four sales copper the actions Onça of higher faced U.K. at global ships the into of seeing we Matsusaka production This activities lead tons translating and work plant These linked volume. Puma Some affected guidance,

from throughput to our have this slide please. The September We year. improved next June XX% by

largely copper Now quarter-on-quarter one last as explained price our quarter. quarter call impact drop quarter prices performance, in we neutral, the the a Nickel in of turning a and significant significant quarter-on-quarter we copper backwardation adjustment EBITDA. had In huge dropped to two, quarter-on-quarter. on given XX% however, in had Nickel our to impact forward XX%. from impact two, quarter significant price from as was our a PPAs had financial curves LME

We also had cost timing quarter. this impacts on

quarter inventory a priced two, mainly higher major PMPs. at As from to carryover we cost, due had

In this addition, the consolidated quarter Indonesia at PT Vale two increases fuel our are cost quarter. in reflected results

at reports, As portion our see ways of capacity, our ramp in production you downstream means third-party looking material. some our maximizing whilst up processing originated from This of are projects. we our we could latest

This we feed. produce tons purchase alone, from of quarter nickel X,XXX

produced X,XXX had While in quarter tons. two, we

better I into hand The So Marcelo. in timing not there to business. positive quarter seen translated in financials we production and morning, Over comments iron takeaways. now would to translated volumes all his improvement three you. of impact performance have operational to price on Good for variations. ore our Marcelo sales have the over are

colors Thank QX Good again. to also production start all hear I'll and my Good you, you you our give Desh. morning. about Good afternoon. QX. presentation, some in

movement with We are rainy the back tons to We XX in encourages season a good QX the million a in in After That's heavy and QX. some license due problem the the news. moisture increased our tons. planning headwinds XX million the year the expectations north of in the delays waste It that of in that us mind. some below increase is made of system. beginning the to

an minutes. XXX. have remains We regards. I'll better give XXX in in Production some update guidance news this to you

the out sales the expect of pattern is to reach QX. You the the to time comparing may gap sales production same related higher notice in the may and We China. and It sales between and production to a of years lead previous production.

now delay expect agencies investing to process increase in and technology last also universities, this been in approach suppression We license of and area. terms a group analyze A progress is we cave. example them of a is small capacity in of closer XXXX. in slide. redesign the half and projects an some year. a the volumes And lot We terms some September by help We a of mine rolling half in studies, to next Gelado up expect of we licenses quality. people to with give of vegetto of or next the next phase range year we first to three got of next of some the important that the license I'll really year license bring half to started the plan. already progress moving ramp installation had north get first previous started production the close you and commissioning to LP project. all the time. Now construction in the had of our The working the of the we as and are We've after us the license helping the agents their product the in in first and month first update wave

Jaspilite. Moving end improvement And to SXXD to know old addressed the bring this by be [indiscernible] with the XXXX of bigger of that. that the the crusher knowledge able small expect to Jaspilite plus we'll you we will we online board larger allow on move we and offset us under XX that Until have to in is XX construction coming the and time. plus the December that problem

licensing Itabiruçu agencies is ready Brucutu to after the works operational phase of first increase rely take dry to a the continuous three improve longer a plan. flexibility year. bring final this we almost stockpile dry when a the stack and stack license attention still end of In with but of them continuous It still system have quality. we you that It's lot we of Southeastern of will a Itabira expansion steps permits. is area done. and is emergency regulation for now [ph] a disposals. new tailing are the on approvals in this to That in need raising And waiting hybrid construction That's to came operation that is process expect point Mission by and Brumadinho months the multiple that that miniaturize. time, related and thought for accomplished.

I'd reinforce you. masters summary, some So to to like in

Based on plan. realistic licenses, expectations regulations about production accomplishment. our project adjusting are in more We

improve to processes. capacity We are to analyze agencies our their close to working the licensing

plan, the the and of production demand excuse in an hand, On is for important to demand. supply but consideration. the take always not the understand our other very we it to market headwinds assess speed There to balance is up

of a market necessity in It Finally the the is and regarding slide. transformation the next happening huge moving decarbonization the high-grade ores. to

a in are Vale. transformation silent We side

market be demand, one mainly one questions. and give with are to I'll reduction for the direct premiums. aggressive our with plan driven downstream downstream for market, for colors an a you class We QX, Chinese in running further fines ore premiums pallet higher the sentiment strong the more the level action in month. Vale decrease In the to the pallets. lead by high in demand, margin premiums Day negative iron here the due I'll a demand stayed in

over hand to I'll Now Gustavo.

Thanks, Marcello. And good morning everyone.

our with EBITDA the quarter. start me for Let performance

$X As ore XX% lower delivered decline we see, explained during largely nickel, $X.X for is benchmark billion the billion you can EBITDA QX, the decline by a than XX% iron the This in in and price to period. QX. copper,

and other year. on Same The the benefit On other offset financial efficiency bunker strong for of expenses, start each where we quarter basis. factors contributing quarter-over-quarter a have basically and FX the across costs better board, launched to the program external two we volumes to delivered last see out. performance we a

sustaining and flat deliver and remind objective with currencies, that. Just to we everyone, to track in costs fixed are up our is here XXXX versus local to on keep CapEx total

to purchase decreased from and ex-third the cash $X.X real ton, the ore higher moving Brazilian driven our Now costs, per by party all-in costs positive depreciation. by mostly iron CX production effect

component structure calling important of over factors. the Another freight, production went One larger the from strong ton. increased CFR by a which ton our in to $XX.X per explained quarter as is $XX.X all-in is two is This freight, per seasonally XX%. shipments cost

Some sales as transit of QX. still recognized in should are and these cargoes be in

takes the The of be effect. lag about It cost goods sold. days for is the recognized other cost as XX to

mix premiums Before decreased all-in in from prices closed QX we our absence we per premium has quality you all, line yet The dividends improved a Marcello Vale not our the and The in performance play Despite captured, EBITDA for contracted in QX consequence in earn JVs. in $XX.X an seasonal breakeven costs. our see premiums our in market average expect as premiums important our $X.X continue the product products of and year. our in a portfolio. be to per September, to cash bunker in explained QX, lower within record This and drop performance. products an also pallet benefit observed last should role of ton. and cost QX at All ton with is by the

$X efficiency increased in continue to better as conversion from is cash XX% to turn by cash of capital reforcing improve our Now offset CapEx with generation, This clients capital and and allocation. last EBITDA positive our as returned The due to our cash days suppliers. working billion to capital is variation management of one mostly cash we XX% QX. regular quarter working our about of outstanding to to the such by uses on shareholders, continued payable discipline

Now the next slide. moving to

This have market to more informs management decisions. better indicator be reduced with quarter net aligned expanded allocation and capital that debt an the we on

affect of are for result, a tax period debt and time characterization the nature provisions excluded longer our these cooperation the through and as change renegotiations As we net provisions from expanded which debt the very These not leverage concept, our see the you debt expanded does obligations program. net compared continue the targeted ratio. over with a with a distributed to This $XX billion as $XX adequate to Brumadinho obligations. to cycle and billion

$X.X capital the for as So we On transition. announced Cliff the the Sudbury before opening committed the Brazil. program, a They finally, five of today's And base Xnd like have for in throughout reaching approval the accretive delivered strong as Q&A, paid by remain Furnace allocation energy position progress year, this I'd dams the operational derisking, takeaways important dividend highly of since Mine that, to we quarter project We startup key highly of With the like up Puma beginning on from buyback them South our in eliminated supplier to milestones, critical Complex we products. a open across call. are call Onça advanced continuous Copper the and of share as program. questions. our structure all disciplined X% for upstream billion I'd of and metals we to implementation reinforce the

and you, Thank ladies gentlemen.

session. now Pactual. question our begin question-and-answer [Operator BTG will Instructions] Correa Leonardo We first with the from And comes

Yes, good everyone. morning,

results, metals issues impacting. the to what last? company the mean, And metals more looking issues I been years? base doing is on mean I side. what think But on have at the the been Eduardo, question to are previous first delay, mean, over can wanted my monetization value on I maintenance I I and the unit a So had below exposing it which just and EBITDA more billion above been I We've several annualized so this long slightly metals other base hear know and mean is in this base issues the this to wanted about about several I that depressed. number the I normalization right, right. hear $X now can seeing normalization, this EBITDA, of how imagine figure assets. for to process right just the path similar you of I mean, I the cost topic, could the does impact because being unit, results perceived mean Right

XXX be medium iron the effective the let's the on of million million on XXX. we ore a this The mean, achievable. the volumes how production maybe nameplate company XXX whether ore right? what is that is point now, in debate is Spinelli, Your I mean than lower capacities term, And volumes market on in how big will volumes, and production iron say Vale XXX this tons much bring I is on, million. discusses running on maybe will whether that's XXX, normalizes on well, right, normalize as Spinelli Second can there discussion.

medium say very long-term in what much. term production more of understand for exactly Vale's So And is right, can path more the give out help realistic targets Thank you let's just But production? on X. increases? guidance the you'll you during terms can is Vale Vale December that how I understand us

Thanks Leonardo. separate to quarter analyze one quarter your to mentioned, will the Thanks, throw maybe a anyhow, like this I'll It's like, there I fair way. not some bring well. as from as let's Deshnee carry other. But to for question. Deshnee Because help it was put one that.

events number maintenance should the it's look I quarter way, by we're half hangovers think specifics, not from that lot you the of and So A largely first some improving production, at of the refineries, us, I year, since postponed, on first of with the think were good the on but with COVID. so pretty track comfortable achieve there, quarter I with featured, just we North what nickel pretty we're the are highest to think the on trying productivity. the mines Underground I'm Atlantic I was their 'XX. since are

So pretty guidance. well, I the see pretty nickel the there. don't comfortable with issues within

we have We're places. that say, to the Deshnee doing As replace well seeds. in very

question. So no, that's me not for a

On we long, after that very is track more Salobo. back that on year. it long But the challenges maintenance had copper, yes, the last we in expected

is understanding think, we mentioned is importantly, I but is plan we'll are about our to XX% the month is the all going jurisdiction I more Salobo And about fixed, growth this III, as complete, copper, first is so that be as said, where second the are there has should last this it So value, world that and of nickel, know us Canada, I R&R and I the fix located with the encourage the there where is think projects, Brazil, In question, and have where and there, assets value you in doubt people the value we assets reserves, the that. Salobo being whereabouts. growth like in I is. know like because resources it your no have of is, game world base I

speed way, past And we are we ring I buying partner, resource a this value bring on with the up we are performance you They're the buying and perspective, and the So XXX% above us to you performance. stance. future asking beyond that business, But that fencing will that. is why think and deliver and change they're that's that not by believe reserves don't and performance. reserve then

quarter, analyze you this any So make it by way, the cannot of sense. course because doesn't

as think And in we fix to will world. again, the You for the and are it's know to Very had this a year. up, very, ring you any in point. best we say assets. I results the that that? how the R&R. help than The optimistic But analyze in how good we're more fundamentally, I already pass right we resources in Spinelli but sure the what can just we over that fence, track to reserves have and nuke values I'll the go the we speed ones very

for thank question. you the Well,

First we growth in that able -- point, and predict thing weren't also tailings to and up we But the happen the it when the mining way backed it our Brumadinho are actually we know we and dams system. to the to to change southeastern recover Mariana couldn't plan and re-planning to are we future. plan our disposing got

is the one point So this side. first

online, and The of need -- system did to but system. southeastern is systems bring in that There of them. not need the we and just we we in huge other we are a capacity the the with license also approach mainly, change side is a we to to and agencies all closer with lack are amount

So differently with And regulators volume. we work we bring them. in

in will So callers give and some we Vale Day. the you numbers

from Our of Ribeiro Bank next question with comes Caio America.

all. my Thank morning you questions. taking good Yes, for

the different right, And I and business, was mentioned unlock you an division table, up Financial avenues, a in on with as value know the past stake So right, are setting the to first mentioned a option that like at recently other minority another the you on miner. there But the looking options the IPO guys Eduardo selling the that question conference, you're right at. in exploring that were metals partnership is you've Times in business. that my base

ore regards you prices, you last timing see unfolded. in quarter that also And secondly, give And can in strategy, year they've to more pressure would you if similar the leaning great. on of can come these situation sense be to and considerable avenues right? color also then to your a give value fourth that be Iron lately, over under volume wanted on us of tend just more us So which I if towards.

quality So consider see to Thank I cost from time around, much. prices? lower this wanted protect you try to money and if very higher removing or would you market the

Hey thanks question. your Caio, for

What see. that's mentioned I We've we where clear previous in as true. path the base the been delivered. back on unlock enormous value see again, that. that Well, mentioned, path discussing. execution in metals, as be question the very we can on IPO amount We've say of the been Let's how going exactly you in get to value to that disciplined we've very a you. I'm to minute. to And I been has tonight We've been to communicating

no taken been going all, our we We that. of within First But has assets. decision on segregate did our board. to were

yes, So best avenues, Because, again assets, plan. we our we a of that have execution to us recently. announced With that. the voiced in the built, been goes avenues most the growth the operating event And being back by a they just as our that the path natural, say execution the to mentioned of but we in could that it see I a and calls. even partnership this being has you is think there

will are us we is keep you it value, not advisors have metals for partners strong base that assets the world and metals. point if to we the engaged we So one it. because here for selling to find on in very everybody best help Base able

I to going optionality confusing we that is the we Yes. can English timing a now I for question. to volume one was not an of you feel and wise, eventually that we events because these us the color with Gustavo, value still, at need the And avenues can be because I'll it's to Portuguese, give values believe be fix can us current. of pass value deliver the So what and We more investors the a Spinelli after previous on in question. creating that happy a comment word deliver asset be new done because that might on partnership use word and want the can To growth, see that partners that's mentioned. that we there us now to these the Help you is then look go when help execution, then this see just partnership business. this he find help

Eduardo. Thanks,

on year at expected So to saying the beginning Caio, the we to you that be been Vale what able is Day. I timing, of give more we've since think color

Probably be we work going continue to So take next more certainly year, execution. time to time. timeframe. early It's the ideal going to for it's some with that

So we stay will there. probably more terms Day a to Vale specifics think in tuned, of the be information position I share in

this, you parts. thank Caio, for instrument into two And two question. I'll the split the

The the to layout we -- volume, value for first value. to value of a from BTG. In the one [indiscernible] part all time the volume have check part the

have a were we check the give So to to the really market not the that we problem cost to create to amount bringing curve and a whole system.

future. mid we to care And about they that's we're bringing When are important. this the about plan. production near in long-term is reason because volumes way why the So the talking

a And to quality. We to have that. window important It's you talked say about adjust that.

is bringing -- to the to the all plan you're So related volume to production quality. our

trend. for need or ores. high-grade Even That's briquettes. focus pellets to the have high address our to And the that long-term, a we on. but agglomerated products, demand in the everyday, That's supply to Caio, want chain. we So we long-term we mid volume assess

that's a And in low a We in we to concentrate concentrate our do. grade ore supply have China, chain. later what flexibility hold

me. today So if you ask

chain If concentrate. grade low you blend in it, our it or ores, you have hold can supply

selling We are margins. in not negative

Fletcher Amos comes with from Barclays. question next Our

of afternoon, morning everyone. good Couple and good Yes, questions.

Deshnee. for one First

Sudbury I If business assets look average big And number we against EBITDA much. to a at spoke And QX? million the second a degree. quite ask again to QX I at then the metal the there? million and Sudbury is $XXX for billion The gone of very it Can up Puma. on question it quarterly million. last question base against out expect should seems around looking quite in Onça years to the revert few of a blown mean in $XXX about bit the base it at what Thanks $XXX cost for My Just happened is the reached that? a revenue over you minus Furnace to have previously. dollars why have seems CapEx to Xnd

Amos. you, Thank

the On the question regarding cost. first

As comes increase. the presentation third-party quarter million in terms from I in $XXX guided itself, and of $XXX that said, of material. as actually and there's purchase the you of quarter the million about

explain me that. let So

concentrates third-party that prices. we buy The actually material is at market buy we that

ton recall were very sub. price. and quarter nickel high during would that actually $XX,XXX led a above $XX,XXX you was Now to two, the Well, per prices it that to

about XX% that XX,XXX To tons put current the million around in at million. three we $XXX $XXX grade coming price our $XXX LME possibly So into consumed itself. that a and in I quarter quarter. treat X,XXX that number And tons about into affected about that and at prices, to is when context material, cost -- will

price. priced this we into So that's one And we a higher there came as again of that the impact inventory quarter. two that price at a in indicated quarter was off else, both into bit experiencing $XX inflationary have with of ops services. But and came pressure, and million. pressure a some we my few inflationary are did I a as everyone that That's

of two, should we quarter definitely somewhere forward, those and see the materializing. go on not most middle a that one, on So and the numbers, numbers quarter from seeing

On Onça Puma question two. the next furnace on

at is high inflationary months, a at we it had approved planning previously those you there the number we some big in working the these And intensity finalize were imperil And team capital would estimates, than a of coming factor right, estimates. ticket when that last very relooking into the So six are higher we costs. towards a we to.

is a big factor So inflation there.

relooking building these be the addition, without mean of In I furnaces can't greening XXXX, we at furnaces. in

we make money to fuel And using is line the switching. that biomass looking there we fuel to continue down are option. sure at can work a the on budget in capital So as

other put for obligations that's have into So one. of have budget the larger we And region. the we in some the money the some social

gives up, complex that your the So XX,XXX to return you does XX% project color. point that operation, tons see, And the cost this a from a reduction lot just capital of this us you. in think, I as a to we've we hope because seen significant of is built typically ramped Once was to a mention to would Thank unit view current gives that and you XX,XXX know, least at project synergies budget bring not typical cost. the that also I complex sufficient for benefit. the

Our Carlos next from Alba with question de Stanley. Morgan comes

of ore the very little fourth thank year. Yes, the everyone. Couple expectation down relative to for much. to at you expectations to our confer the bit Good iron we're a quarter. last the a think I surprised, morning, similar come ore unit is to costs least level iron you to But fourth Gustavo third on questions. quarter on mentioned One quarter costs,

going So iron for fourth do Every company beyond the you talk inflation very optimistic that. outlook mining the outlook costs one into see What you single can gas is facing cost for forward? XXXX, How pressures? the moving about the quarter. world maybe unit in

one inflation you benefit have the inflation of cost, again, negative. On higher pressures But are the hand, production. the

great. be share can some you if that'll color, so And

will other Mariana negotiations. be The terms of in the

done from turn efforts as implementing, well a has Vale really that the everything move think to repair tremendous effort by situation. ahead done page obviously was in the you in partner your tremendous done to right damage the do Samarco finally and but basically Mariana, I

I think, needs to Mariana situation the reach to end. Mariana, the

useful. can share be you. you will colors any So also there very Thank

Thanks, Carlos.

cost, improvement I'll shown quarter-over-quarter ton. we've $X.X So some take per both. On

prep should they seen my had remarks, we QX. QX, wasn't should and in and see particularly, the higher September this materialized, little as we but third-party percentage lot of dropping costs, higher a A in in all-in yet which you've well. quarter, normalized as the of purchase, freight be especially in I CX particularly, coming impacted This which said

QX volume continue those see of some we in and picture rent. reduce bring to better overall, should we as So pressures a

we forward for the in entire impact XXXX. will Looking it's industry costs, high the terms when more Look, some affecting, inflation in of next what we more bunker share years. suffering talk couple on for certainly from think detail of is is seeing Vale details it. But view invalidate so our being are fuel do particularly at we'll

doing think are And our we cost pressures. announced sense. look reduction. very well. cost settlement that ourselves. thing is those and we we're parties including all some makes continue helping It's move agreement that's moving positive we Remember On one and certainly the of for Mariana, reaching about super $X a an makes think to reduction I reengaging I well potential sense solution to billion had on offset program. here external A

able it's, think to be this. we'll resolve we So sit again down and

able you the months, that I of and we'll well and works said, and as BHP be to an for As for beneficial everybody. resume hopefully next we are think couple conversations within sure it agreement that reach would Vale be optimistic for for

Our Banco next [indiscernible] with from question comes Santander.

my a quick first thanks and ore My iron on for taking production. follow-up morning, question. question Good is

view, please outlook extended the you production your to So related could challenges better debt in deliver Northern what SXX are a operations? net main new on Vale XXXX? in the my your your And elaborate second for to question System figures And concept. further in for production is

please these color as these shareholders to accelerate cash the decision that Vale And give more returns after was concepts? how on a you revising could you. So we process announcements? us assume of can Thank result, will

Rafael SXXD, SXXD the amount Well, had you, is planning talk for with mine processing And way the let's the knowledge funding we we the just are with in the change for million of OBK that about the the are made huge tons that nameplate Thank the we below of that. us XX realm. question.

latches in So already stage done. have we can this what we just expect here, small

so the volume we difference the so solve the line today, by and the that XX, this we we XX a problem on cannot for to bring that will But only So nameplate expect nameplate to producing plus set have next are coming mid-term, year. plus XXXX. between what

the So construction. that under XX we consider can and plus is

problem capacity additional been North because the XX. an the haven't and plus there it are from have we we tool improved facing solving waiting System, thing the XXXX, for side Ranch, North continuous of is delaying. by the increase whole definitely a license So we licenses, we've for ratio, strip coming the of And picture the

us forces waste. move it more to So

cost your increase So and you decrease your production volume.

have to We bring one, important. license. already the And do to what a the license. up now it it's So three, license, path to grew big keep body will be the but the to a not reach we LP, the

final have So the license of end by the next to we expect year.

volumes So call we XXXX. this small license. in And we bring it a

or a need to Brumadinho the reduce we [indiscernible] have, keep the we to speed the cavity up that will this. together a the mine to suppression that radios time close we to every have in to have we in So redesigned key the

as we as this been not it we've doing can. fast So but is

to planning. to this plan is time right have to this more that's but in line this. fast now as year and we the can, try license be in But All sophistication are right we the we So gelato adjusting as in reflect the what we'll that. for do, this are three

So Rafael, Gustavo, here.

in Just we more objectives to think the one an had with market. aligned make I Look, indicator your second were question. close sure to

debt out expand extremely return the the been thought years over the I nature, the revisited, disciplined sense think provide one came, our flexibility, reasons items focused debt one operational included us disciplined expanding indicator inform the on were have and right? since with last be the make terms was financial that we just to Eduardo So And at very in is so to an to net and the concept. to took have expect it net should why more long-term you of in we to us in end, cash several decision, capital shareholders. we us didn't our this we've have of could the them allocation that continue in second better nature, of very that

Our from JPMorgan. with next De question comes Rodolfo Angele

good morning. Hey,

I insist bit of on a what's just happening my I think most already in little answered, to North. wanted questions but the

those around had that has what already. defined the just you been to exactly So issue is stable, understand plans wanted operation mining licensing, with the issue, because

a should wondering areas that lot there exactly how going what been is be Thanks. what of and authorities of it the happening, be more is licensed, is which is are visibility and the to to being it have overcome? it's just need or So, tougher, issue

all license, that one take Many regarding after Rodolfo. Brazil, but you, point this is huge points transformation the Thank consideration. we And first the all Brumadinho, have here, business we license, permits. the mine must a are one and in environmental in

given speed so The in agency process of have many times a and main help that hands license the other point them, together don't thing the tools is bring and that. as a to whole. up we've prioritize and enough the with for priority And to been we to that's have the them capacity capacity refine working to to agencies, them the the

get you have have plan this, mine plan if in don't Every plan. mine a plan, consider time to the your year. but So to you your a plan. you your if in do And a your in consider one match that, get, license mine you mine made mine problem

mine to bring here, is world. of in but And the every I things of need plan more after forget way getting it's be as only common. So yes. not the Brazil, world in in every can in It's say not tougher. that mentioned, we we props part place to is a realistic Yes, two I every don't to more need it's sophisticated, our that point. consider more Brumadinho, problem studies. is environmental And in not that's one this

what the to we That's three to combination different need are capability the we of agencies. these implement So bringing approach. doing, more factors, a

next with from Daniel BBA. Our question Sasson comes Itau

everyone. My Hi, Thanks to Good may Eduardo. morning. question questions. first be for my taking

and China the And for that comment base party you market. base, That to acquired interactions that you've bit concern? Eduardo your had planning. just she participation reelected If you how great. the the could could concern was into my finished these with for you comment increase operations of Spinelli, a these the Gustavo and insurer if bit members you think or in receive on expectations would or or that new has strategic in your maybe a from your How now entrance How to their they help second develop have question you been conversations on could Congress strategic first be term. shareholders a

you. performance? a operational these If metrics you on the to towards could the or property for the comment Thank just that a conditions operational you're ground the wanted bit move on bit call seeing sector

record have a the extremely us the they interactions assets. by way, and they they of in materially sense that [indiscernible] the the our been take grading Thanks, track [indiscernible] that us people the with investment act, mentioned we Daniel. of right? bet look I at our that this great extreme this have our that beginning think positive compliant because we question record de-risked, I Great of have ESG. validation as have They see mindset, speech, uniqueness on in of When has you have see the that growth, thesis, we that solid far on my so makes sense

opportunities, shareholders track it's that just, somebody and only because within with our base offer us record it discussion, movement, positive. my obviously, Board see of help help before think see I can great mentioned metals us on can value, value, a So the as it's I unlock

confirmation, I a Gustavo, up mentioned, little of So thesis. a right, because if it's about as right? -- moment investment And to it's our you what validation bit, want

ESG talk We as rating, an to upgrade on us you a stats. I'll and just recent importantly, or giving saw report Yes, passing importantly, probably -- Spinelli say Moody's before to reaffirming our but more China. from the about

important validator seen of all we've is, and very last seen the [indiscernible] about couple this external, that done over one talking you've years, progress think that. the external I

we're a So starting validations progress. the I in that external see of think to company years and several lot last has evolved some the

China. Okay, Daniel, about now well

to this split short-term and in let's long-term. So mid

best cautiously the the no optimistic. the in COVID Every says that policies some and is from that the change geopolitical side Gustavo coming feelings, So message, to party time for term. negative have short phrase we Congress, mixed

they properties, lines. the this implementation news. red -- the is thing, controlling declining, the demand This bad but the I from of I are the good is neutrality three think Some a that know a nothing came is is properties

Congress least is you the the manufacturing controlled. infrastructure is are and disruption that declining no at being as -- perceived. party well So can Despite side good for of the FAI. the is see And

commitment betting high-grade environmental ores. an for bring their So our the extra they that are demand on and will to that goals

We heard higher numbers. expect. what last we this is see than macro that quarter So from GDP

for production that. We in next X.XX decline below the a see and expect growth tons whole. a a We year both And for We GDP these as billion years. in are X the an year X% this see there properties year. billion around next CSP [indiscernible] for upside

with long-term is means to we intact. we Stability X this the market coming GDP coming strong see have this is when the least X.X% analysis. from years. And for it point big think CSP macro need remains a growth to it urbanization we see we stability demands said The X% in a on a around billion day infrastructure track. wins in the decarbonization, remaining keep mid So of this front party the lot stimulus. other at we its I to

in We have the a consumption opportunity China the and huge intensitive this construction. in two

So these together we with remains the environment commitment, intact. the thesis our it see big long-term,

comes with Broda next Our Tyler RBC. from question

be more like -- ask I question. call thoughts. much III change the I I I now. to be Eduardo, partnership, that's around much the much base guess be industry the you'd metals to a have very you system? your sounds analysis, able more at iron to today. want project how mentioned I moment. that capacity strategy? And how do it III China. providing partnership. progress levels mean, your that's facilities on but blending then from project, secondly, there halted the is in been then And just second the someone And an that Thanks hold terms blending wider West Thanks. to of of I at a guess, inventory could the question our your of think West this you according within ore the does mean, record basis counseling Great. had in I just was for The the

Thanks off of difference sort benefits you partner So how very versus the downstream a or more play financial sort do of peer? a the between from a much.

it Thank is you actually, the see Well, inventory in of we you, if low. numbers Tyler. China,

are also. now in our China a level, million as in whole tons So low we in XXX the inventories, is hitting

problem raise blending. any for venture So our and we to operations we any don't in are even confident have

West capacity have Malaysia, main port Shulanghu of in center. in river. for So expansion And regarding that's that Delta the spare III entrance and yellow have capacity in we our Vale's the an in [indiscernible] in we the the project,

related So establishment reorganize mineral -- to a it's is China to this Chinese more strategy CMR their resource. the of the

they them and are services, expand to to So we to close happen. mandate have really this CMR the make is their to optimize or

think organization, them. they terms holding of decision I but the are this synergies with So strategy the in because and of

the of We a to message of -- this aligned. that a Chinese see question we are enough side. not any or is inventory don't just totally capacity. reorganization But It's is

perceive help Thanks, So look, when it's I But value, the just Spinelli. clear, ask think a question We in we want partners otherwise, I that Vale. the not to way. the people Gustavo that leading we think it me right? get want value again, do Tyler, to by you asset, process. same of we the perceives, people that he's won't want I'll we do perceives

any I be more So it you doesn't partners that see But -- partners want does in okay. has thinks give can don't on appear this sense. to and case, color it, we because But us. it make Gustavo like make that,

as asset well I very Yes, are have Well, unique we the a base as we it's think here. look, -- COVID.

for in of mobilities well two the trends of good They sitting electrification. positioned macro tremendous very resources. In The generation, are relevant most our are amount of We jurisdictions. very right.

And to and from loud closer That's be that market. hear the to we wants everybody us. So clear. clear

-- with the as believes facing in but to platforms were the that's said, is it preferred willing someone willing on you to create what it path, We long-term are world. with Eduardo probably most has to is fundamentals here. we commodity after partner to be are exciting is what be someone that the invest those evaluating if And future has to

Eduardo time This question-and-answer at session. may proceed Bartolomeo, Mr. this statements. with concludes your closing today's you

you you. Thank thank Well, guys.

for this a The thanks bit. and I perspective it quarter, think little think the was a really changed interest I one. solid

terms Gustavo need Gustavo much but the in solid a better. to believe But We was production disappointed just right line not spec little is path. or right I because mentioned, as moving based the a on as eventually it do bit, a is came mentioned, things freight says, of a costs we're In question. we it's so. think quarter. think a I I -- doing around we're -- We cost It

on As safety, we've reparation we are been risk focus the one, on people and we saying, since the materially company. will day

have decreased. We materially

the The that. one and characterization dams of another mood evidence is case the rates on is the of changing certification. is So

the position best a miners, exist lastly, be to value in on discussed want the of help We're went by be we there the out uniqueness for there, in we create on tensions, reinforced as we're were are without as taking the soluble we our necessarily an unique lot to to is the value And [indiscernible] Humanity any a assets time We that to Because able face questions miner. and agenda the that new resources portfolio Spinelli we on as of the the challenge unique a questions doubt no That's best miners course, Because the way society. the As the Puma improve to And of we're to is climate Onça think get otherwise, of We start the profit we and that, believe, as the why reason of of nobody seen one a are. deliver I think see then right world. change portfolio. I see climate but we are We've I how and this the world. threat, as but done, three. well. going discussing we accelerate geopolitical opportunity. all has the and both. a have them being time. not way can this not the good

employees I the a We takes. it are what end. as value only to doing safe. our not stakeholders, when it marathon, a the a society, to call. our guests take here employees create we time We it's Puma And have say sprint, to -- in in after a to deem will marathon will our think be so lot hope to our get of is extremely and a Thanks all the see to we listen but I -- to used next the and I it's and lot. it you we we're shareholders, to Keep that disciplined. our to Onça weave team final And still get to

conclude Vale's you call Thank does conference very today. much That for for participation.

disconnect. You now may