Iron ore mining behemoth Vale S.A. has reported robust 2021 first-quarter financial results, primarily driven by the record-breaking iron ore rally of 2021. Iron ore prices have remained on fire since the start of 2021 due to increased economic recovery, triggered by an ease in the pandemic situation in major iron ore consuming nations, including China. Vale S.A. has reported a net income of US$5.55 billion, which is US$4.807 billion higher than the previous quarter.
Lower Brumadinho expenses have given a solid boost to the record-breaking rise in net income. The strong Q1 FY21 financial performance comes hot on the heels of robust production results released by the company a week earlier, on 19 April 2021. The company amped up its iron ore business despite the impacts and challenges of COVID-19.
The company's nickel business also played a supportive role in boosting the quarter results. Production and sales of finished nickel ex-VNC were 6.8 per cent and 8.6 per cent higher in this quarter compared to the previous quarter.