Vale SA sales decline after dam break

Brazil's Vale SA said its production and sales of iron ore fell in the first quarter from a year earlier, reflecting the aftermath of the deadly collapse of the Brumadinho dam in late January.

Iron ore production fell 11 percent to 72.87 million tonnes, while sales of this product fell 22 percent in three months to 55.416 million tonnes.

The world's largest exporter of iron ore closed various mines following the collapse of the Brumadinho dam, releasing a stream of toxic mud that buried nearby buildings, including the company's cafeteria, killing 236 people, 34 of whom are still missing.

Vale shares, which rose 16 percent from the low they hit immediately after the disaster, were down 1 percent on Wednesday, falling slightly faster than other global mining stocks, which were also mostly negative as iron ore prices plunged.

Credit Suisse analysts called the numbers "weak" in a research note.

Production numbers came a day ahead of Vale's quarterly results. Analysts and investors will take a close look at the impact of the Brumadinho disaster on profit margins, which will be offset in part by higher iron ore prices, largely fueled by the dam explosion.