Brazil-based iron ore producer Vale reported a 17% decline in net income for the first quarter of 2025, ending March 31, primarily due to lower iron ore prices. Net income attributable to shareholders was $1.39 billion, down from $1.67 billion in the same period of 2024. Net operating revenues reached $8.1 billion, a 4% decrease from $8.45 billion in the prior year’s first quarter.

Vale’s net debt rose by 21% year-on-year to $12.19bn.

The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 9% to $3.1 billion. Free cash flow saw a significant 77% drop to $504 million from $2.2 billion in the first quarter of 2024. By March 31, 2025, Vale’s net debt had increased 21% year-on-year to $12.19 billion. Capital expenditures totaled $1.17 billion, reflecting a 16% reduction compared to the same period in 2024.

Vale achieved an 11% reduction in its C1 cash cost for iron ore fines, which covers production expenses from mine to port, bringing it to $21 per tonne. This cost improvement highlights the company’s focus on operational efficiency. Vale CEO Gustavo Pimenta commented: “We had a consistent start to the year, aligned with our objectives for 2025. We are seeing good momentum in cost management, with our C1 reaching US$21/t in Q1, continuing the year-on-year downward trajectory. Our value-accretive projects continue to progress, being essential elements towards enhancing our portfolio flexibility and improving operational and cost efficiency.”

In February 2025, Vale announced a $12.26 billion investment plan to expand its operations in the Carajas complex in northern Brazil. The initiative aims to increase iron ore production to 200 million tonnes and copper output to 350,000 tonnes by 2030, strengthening the company’s position in global markets. Pimenta added: “At Vale Base Metals, the benefits of the Asset Review initiatives are emerging and we are laser-focused on delivering. Additionally, we have been consistently optimising our balance sheet through asset-light solutions, such as the transaction that created the strategic joint venture at Alianca Energia, which will also help us deliver on our long-term decarbonisation goals.”

Vale’s efforts focus on enhancing operational performance and supporting sustainable practices. The company’s strategic investments and cost management initiatives position it to navigate market challenges while contributing to long-term growth and environmental objectives in Brazil’s mining sector.