Located on Guaiba Island in the state of Rio-de-Janeiro (Brazil), this terminal is used to export iron ore.
Vale- world’s largest iron ore miner has temporarily shut operations at Guiaba Island Terminal (TIG), on receiving notice from the Mangaratiba city government in Rio de Janeiro yesterday (11th Mar’19). However, Vale confirms the availability of all the required necessary licenses required for regular operations at the terminal and expects early resumption of operation at the terminal.
The operation halt at TIG is for the second time since 25th Jan dam mishap at Vale. Previously, the operation at terminal was halted due to environmental violation but was soon reopened on 1st Feb.
Vale underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan’19. At Feijao mine dam 1 collapsed, which used to dispose tailings from ore production and was inactive. The disaster unleashed mining debris into the region resulting in huge loss of life and property especially in the town of Brumadinho. The miner later declared force majeure, and cut down 40 MnT iron ore and pellet availability along with additional 30 MnT of raw material shortage due to operation hault at Brucutu mines. Later, on 15th Feb, Vale had temporarily suspended operation at its Malaysian Distribution Centre for about 10 to 15 days owing to fire broke out.
Towards end of Feb’19, Vale proceeded with decommissioning of Forquilha I, Forquilha II, Forquilha III and Grupo dams which is expected to affect around 3 MnT production loss in 2019. Also, Vale announced decommissioning of the upstream Vargem Grande upstream dam, as per press release of Feb 4th.
As per Brazilian National Mining Agency, the government is to ban new upstream tailing dam and orders decommissioning of all such dams by Aug 21. On similar ground, Vale is to decommission its 10 upstream dams in next three years.
Average global iron ore fines prices up in Feb’19 due to Vale mishap
Monthly average global iron ore fines (Fe 62%) prices increased 16% to USD 88/MT, CFR China in Feb’19 compared to USD 76/MT, CFR China in Jan’19.
Leave a Reply