Brazil Miner Vale 1Q Aluminum Output Down 8% From 1Q 2008

Brazil miner Companhia Vale do Rio Doce's (RIO) aluminum output fell 8% to 121,000 metric tons in the first quarter, according to the company's production report released Tuesday.

The bulk of the product, 112,000 tons, was refined at Vale's Albras plant. This was only 0.4% less than Albras refined in the year-ago quarter.

However, at Vale's other aluminum subsidiary, Valesul, output plummeted 54.3% to just 9,000 tons compared to the same quarter in 2008.

Vale cutback production at Valesul to 40% capacity in October 2008. Vale said at the time high Brazilian energy costs did not make production worthwhile at the Rio de Janeiro plant site.

Brazil's total aluminum production rose 0.4% to 1.661.1 million metric tons in 2008, according to the Brazilian Aluminum Association.

The largest producer in the year was CBA with a total of 465,700 tons, followed by Albras with 459,300 tons and Alcoa (AA), who produced 370,500 tons.

BHP (BHP) Billiton produced 180,700 tons, while Novelis had an output of 99,200 tons, while Valesul produced 85,700 tons.

-By John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086; [e-mail]