SAO PAULO, July 22 (Reuters) - Brazilian miner Vale

produced 83.6 million metric tons of iron ore in the

second quarter, up 3.7% from a year earlier, the company

reported on Tuesday.

In its output and sales report, Vale said the increase was

mainly driven by a new second-quarter record at the S11D mining

project in northern Brazil, its top iron ore producer, and

"strong performance" at its southeastern Brucutu mine.

"In iron ore, the combination of new assets ramping up and

greater operational reliability is supporting stronger adherence

to the 2025 production plan," Vale said.

The company, one of the largest iron ore producers in the

world, expects to produce between 325 million and 335 million

tons of iron ore this year.

Citi analysts including Alexander Hacking said Vale posted a

"solid quarter", noting the firm is "on track to meet (its)

guidance".

"We expect the stock to trade inline tomorrow," they added.

Vale reported iron ore sales at 77.3 million tons in the

quarter, down 3.1%, with the company's average realized price of

iron ore fines landing at $85.1 per ton, a 13.3% fall.

Vale said the sales were impacted by its portfolio

optimization strategy to prioritize its medium-grade product

offering, and also cited stock replenishment.

BASE METALS

Vale's copper production rose nearly 18% in the period to

about 92,600 tons, it said, pointing to higher grades achieved

at Brazil's Sossego plant, nominal capacity at its Salobo

complex, also in Brazil, and the ramp-up of the Voisey's Bay

project in Canada.

Copper sales rose 17% to some 89,000 tons, Vale said.

Meanwhile, nickel production increased some 44%, reaching

about 40,300 tons, which Vale attributed to better performance

of its Canadian assets and its Onca Puma mining project in

Brazil, as well as "lower planned maintenance activity".

Nickel sales rose nearly 21% to about 41,400 tons.

Vale is set to release full second-quarter earnings on July

31.