On July 25th, Vale disclosed its Q2 2024 performance. In that quarter, the company's strong shipment volume resulted in a formally adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $4 billion.
We maintained strong operational performance this quarter. In terms of iron ore solutions, thanks to the stable performance of S11D, our production reached the highest record for the second quarter since 2018. In order to achieve our strategic goal of becoming the preferred raw material supplier for low-carbon emission steel, we are advancing key growth projects such as Dawarjen and Capanema, which will increase our production capacity by 30 million tons in the next 12 months. In addition, we are pleased to announce a partnership on a mega hub strategy that will further consolidate our market position as a competitive direct reduction product supplier. In terms of energy transition metals, we have restored the Sosegu, Onsabuma, and Salobo mining areas. Operation of; We recently announced the appointment of Mr. Shaun Usmar as the new CEO of Vale Base Metals Limited to lead our copper nickel business. He will bring us extensive mining experience and strategic vision. Finally, we have successfully dismantled the B3/B4 mining dams, and we are expected to complete 53% of the upstream dam de characterization plan by the end of this year, thereby strengthening our commitment to safety and sustainable development Eduardo Bartolomeo, CEO of Vale, said about the business situation.
According to the financial report, in the second quarter of 2024, Vale's iron ore shipments increased by 5.4 million tons year-on-year and 16 million tons month on month, with growth rates of 7% and 25%, respectively. This is due to the highest production volume in the second quarter since 2018 and the completion of inventory sales. During the same period, the cash cost of the company's iron ore powder ore C1 (excluding third-party procurement) was $24.9/ton, an increase of 6% compared to the previous period, mainly due to the impact of seasonal inventory turnover and concentrated maintenance and repair activities.
In the second quarter of 2024, the freight cost of Vale iron ore powder was $19.0 per ton, a decrease of $0.3 per ton compared to the previous quarter, and $6.8 per ton lower than the average freight cost of the Brazil China C3 route in the second quarter, thanks to the company's long-term charter contracts. During the same period, the company's quarterly total costs for copper and nickel were $3651/ton and $15000/ton, respectively, both of which are expected to achieve their annual cost guidance targets.
In terms of capital allocation, in the second quarter of 2024, Vale's capital expenditure was $1.3 billion, a year-on-year increase of $100 million, in line with the annual guidance target of approximately $6.5 billion.
Vale is one of the world's largest iron ore producers and the largest mining company on the American continent. The company's first quarter 2024 financial report shows that Vale's formally adjusted EBITDA (earnings before interest, tax, depreciation, and amortization, including EBITDA share of $203 million in affiliated and joint ventures) was $3.5 billion, a decrease of 9% year-on-year and 49% month on month, mainly due to the weakening of the actual price of iron ore powder. The month on month changes are also affected by seasonal sales declines.