In Q412, revenues from metallurgical coal were $181 million, 11.5% lower than Q312. The decrease was due to the lower average realized price of $132.49/mt vis-à-vis $177.97 in the last quarter, which was expected as its sales are priced with a lag and were thus impacted by the sharp fall in metallurgical coal prices in Q312. In 2012, metallurgical coal revenues reached $834 million compared to $548 million in 2011, while the average realized price fell to $171.38/mt from $235.27 in the same period.

In Q412, revenues from sales of thermal coal were $21 million, equal to Q312, with even volumes and a slight increase in average sale price to $93.57/mt from $90.91 in the previous quarter. In 2012, sales Q412 volumes fell to 3.134 million mt from 5.342 million mt in 2011, while the average sale price fell to $82.39/mt from $95.54 in 2011.

In February 2013, Vale declared force majeure on a number of coal sales contracts in Mozambique due to heavy rainfall—50% above the same period of 2011, that created serious challenges to the Linha do Sena railway. Vale estimates a loss of approximately 250,000 mt in metallurgical coal shipments. Caminhos de Ferro de Moçambique, owner of the railway, is taking all the necessary measures expected to be normalized by the end of February.