Unit (000 metric tons)

Production overview

In 3Q14, production of manganese ore reached654,000 t compared to 505,000 t in 2Q14 and621,000 t  in  3Q13, due to  good  operational performance across all mine hubs.

Manganese ore production

Output from the Carajás Azul manganese mine increased by 30.2% when compared to 2Q14 and decreased by 5.2% against 3Q13, reaching481,000 t in 3Q14. The higher production was due to the use of ore recovered from the tailings dam and the end of the rainy season. However, given the annual mine planning, production decreased when compared to 3Q13.In 3Q14, output from Urucum reached the historical record of  158,000 t, an increase of16.5% against 2Q14 and 92.8% against  3Q13, as a result of the end of the rainy season and operational improvements carried out in the beneficiation plant  in  4Q13, which  improved productivity and physical availability of the plant during 2014.

A mine expansion, which will allow significant production increases as of next year, is currently ongoing and in 2H14 the infrastructure in the underground mine to access high quality ore bodies will be built.

Since 4Q13, we have been processing dumped ore due to the geological conditions in the north section of Morro da Mina. We expect to return production to normal levels during  1H15 by exploring the south section of the mine.

Ferroalloys production

Production of ferroalloys was 6.5% lower than in2Q14, due to a decision to shut down furnaces and sell excess energy to the Brazilian national grid.

Ferroalloy quarterly production was comprised of 18,900 t of ferrosilicon manganese alloys (FeSiMn), 17,000 t of high-carbon manganese alloys (FeMnHc) and 4,800 t of medium-carbon manganese alloys (FeMnMC).

• [Editor:Sophie]