Vale posted record gross revenues of $US12.1 billion and net earnings of $4.8 billion during the third quarter with record production in iron ore, pellets, nickel, bauxite, alumina, aluminium, cobalt and thermal coal.

Third-quarter coal production reached 1.048 million tonnes during the quarter, broken down into 686,000t of metallurgical coal and 362,000t of thermal coal.

While production was impacted by a routine longwall move, the Integra mine in New South Wales was the biggest contributor to Vale’s coal total with 448,000t – almost 54% of total coal output.

At Vale’s new longwall development, the Carborough Downs mine, performance was negatively impacted by a delay in delivery of mining equipment and construction work.

The mine produced 76,000t for the quarter, but Vale expects it to ramp up from the current 1Mt per annum to a nominal capacity of 4.8Mtpa by 2011.

The Broadlea mine produced 269,000t during the quarter after a second fleet was deployed to the mine in July to compensate for lower Carborough Downs production.

Revenues from coal sales totalled $203 million in the third quarter, on an average sale price of $235.17 per tonne for metallurgical coal and $91.51/t for thermal coal.

Vale invested about $97 million in coal during the quarter, with $67 million in expansion projects, $21 million in research and development and $8 million in in-stay business.

Vale reiterated that although it had maintained its capital expenditure program it reserved the right to change its mind.

“In the light of these risks and opportunities, we are maintaining a flexible stance, implementing our growth strategy but retaining the optionality to manage our production and project pipeline according to a careful assessment of the evolution of market conditions,” Vale said.