Operating revenues for the June quarter reached $US12.2 billion ($A11.8 billion), 7.2% up on the March quarter, when iron ore production was hit by wet weather.

Iron ore shipments were 63 million tonnes, a 14.9% improvement on the March quarter.

Income was $3.9 billion, or $4.3 billion before accounting losses, resulting in an operating income margin of 36.2%.

The non-recurring accounting loss was due to asset divestments, while net earnings were also impacted by the devaluation of the Brazilian real against the US dollar.

However, the currency movements contributed positively to the company’s cash flow.

“Given that almost 100 per cent of our debt portfolio is denominated in US dollars or converted into US dollars through swaps there is no material effect on it,” Vale said.

Earnings before interest, tax, depreciation and amortisation were $5.1 billion, or $5.5 billion excluding accounting losses, 10.7% above the previous quarter.

Net earnings were $2.7 billion or 52c per share.

“Vale had a robust financial performance in spite of the challenges posed by the lower price environment and operational issues in the base metals and coal businesses,” the company said.

“We continue to develop a large portfolio of projects aiming to meet the demand stemming from the long-term growth dynamics of emerging economies and with a strong focus on maximising value creation.”

For the 2012 financial year, EBITDA reached $27.1 billion.

This article first appeared in ILN's sister publication MiningNews.net.