Brazilian miner Vale revealed on Tuesday (29th July) that it enjoyed increased pgm production in the second quarter of 2009.

The company confirmed that platinum and palladium output increased by 18.6 per cent and 28.6 per cent respectively on a quarterly basis, giving a combined total of 115,000 oz.

That figure represents a rise of 23,000 oz from the preceding three-month period and a jump of 18,000 oz from the equivalent quarter 12 months earlier.

Vale explained that the impressive upturn from Q1 2009 can largely be attributed to increased recoveries at its Sudbury site and the timing of shipments to its Acton refinery in the UK.

Discussing the results, Chief Financial Officer Fabio Barbosa expressed his belief that pgm markets should continue to recover in the remainder of the year as the economic downturn begins to ease.

"Global industrial production has started to recover, that's clear, and our business is deeply connected to industrial production," he was quoted by Reuters as saying in an investor conference call.

"There is a clear convergence toward better performance in the second half of 2009."

The firm also revealed that catalytic converters accounted for 50 per cent of the consumption of its platinum, despite the current lull in the global automotive industry.

Vale managed to maintain its average platinum sales price at close to $1,028 per oz, mainly due to strong jewellery demand and the recent growth in the Chinese auto market.

Sources:

Performance of Vale in 2Q09 (29/07/09)

Vale – 2Q09 Production Report (29/07/09)

Brazil's Vale sees metals markets rebound in 2009 (30/07/09)

Ÿ Adfero Ltd