“The results we achieved had a sharp increase and cost reduction was a very important element in this variation. We achieved $354 million in costs savings, we now have reached $4.4 billion for costs, down from $5 billion,” Vale chief financial officer Fabio Barbosa said.

Operating revenue of $6.8 billion was achieved in the quarter, up 4.7% on the last quarter, while net earnings were up from $1.5 billion.

The company’s coal operations performed above the December 2009 quarter with coal production growing 12% to 1.4 million tonnes.

Integra production of metallurgical coal was up after the mine finished a longwall move in early January. However, thermal coal production in the open pit mine was negatively impacted by weather conditions.

Production at Carborough Downs reached 283,000t, versus 245,000t in the last quarter.

The installation and commissioning of a longwall in September last year and the replacement of trunk conveyors in January contributed to the record production.

The new El Hatillo thermal coal mine in Colombia continued it ramp-up producing 522,000t for the quarter.

During the quarter, Vale's investments totalled $2.16 billion, of which $1.72 billion went to financing organic growth, $1.54 billion for project development, $185 million for research and development, and $433 million for the support of existing operations.