Vale reduces contaminant levels in iron ore
Release Date:
2025-09-30
The Brazilian mining company, Vale. has successfuly lowered the silica and alumina content in its iron ore. thereby achievingimprovements in the final sale price of its product.
lron ore with elevated silica levels requires additional processing in blast furnaces to neutraize the contaminant. This processconsumes more energy, generates increased residue, ralsing the pig ron production costs, and consequently exerts downwardpressure on ore prlcing
According to industry sources, Vale has reduced its silica-related penalty from $2.5 to $1.0/mt, relecting its initiatives to minimizesilica presence within its ore.
Regarding alumina, Vale typically secures a premium ranging from $1.0 to $1.5/mt for a significant porion of its output, due tolower alumina levels compared to competitors.
Recently, this premium has risen to $4.0-$4.5/mt, representing substantial gains given that Vale sels approximately 150 milion mtof this ore annually.
From: Steel Orbis
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