SÃO PAULO Vale SAs ferroalloys revenues fell by 35.7 percent year on year in 2012 after the Brazilian miner sold its European operations to miner Glencore International Plc in the middle of last year.
Ferroalloys revenues totaled $358 million in 2012, down from $557 million in 2011, while volumes sold decreased 30.8 percent year on year to 267,000 tonnes.
The significant yearly decrease in sales volume and revenues for ferroalloys is due to the sale of our manganese ferroalloys operations in Europe, the company said.
Glencore acquired 100 percent of Vale Manganèse France, located in Dunkirk, and 100 percent of Vale Manganese Norway, located in Mo i Rana, for $160 million in cash. The operations have the capacity to produce 150,000 tonnes and 110,000 tonnes of manganese ferroalloys per year, respectively.
Lower ferroalloy prices also affected the companys results. Ferroalloy average prices stood at $1,340.82 per tonne in 2012 from $1,443.01 tonne the year before.
Fourth-quarter manganese ore revenues reached $72 million, a quarter-over-quarter increase of 26.3 percent, mostly on the back of higher prices and sales volumes spurred by greater demand from China, Vale said.
Manganese ore prices in 2012 fell to an average of $134.10 per tonne, compared with $165.70 per tonne in 2011.
A version of this article was first published by AMM sister publication Metal Bulletin.