On 21st Mar, Vale received approval from the State Agency for Environment and Sustainable Development (SEMAD) for renewal of operations at its Brucutu mines. The miner on 19th Mar had received court’s order in favor of resumption at Laranjeiras tailings dam and the Brucutu mine in Vale’s Southeastern System, Minas Gerais of Southeast Brazil. However, the final decision was pending with the Environment and Sustainable Development (SEMAD).
Towards early Feb’19, Vale had shut operation at its Brucutu mines, causing a production loss of about 30 MnT pa. The move was a step ahead towards safety after iron ore producer underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan’19.
No potential production loss expected from Dique III dam shut down
Vale on 21st March announced that it has been also been ordered to shut operation at its iron ore complex of Dique III in the city of Nova Lima by 1st civil court, Minas Gerais state. However, the miner did not convey any potential loss of production.
Suspension at Vale’s Alegria iron ore mine may impact 10 MnT production
Vale on 20th March announced that it had temporarily shut operations at its Alegria mine in Mariana complex due to a failure of a stress test to guarantee stability of the mine’s structures. The suspension at mine is expected to bring about 10 MnT production losses per year.
Earlier this week, Vale has lifted the temporary ban at its Guaiba Island Terminal (TIG) and is being authorized by the Government to reestablish the activities at the terminal. Following the court decision, Mangaratiba City Hall authorities lifted the interdiction on 18th Mar’19. The miner also reaffirms availability of all the necessary required licenses to resume normal operations at the terminal.
Global iron ore prices rebounded towards week end
The global iron ore prices opened up this week at USD 87.8/MT, CFR China. Amidst court’s decision in favor of resumption at Laranjeiras tailings dam and the Brucutu mine, prices fell to USD 84.10/MT,CFR China towards mid week. However, later the prices rebounded to USD 86.8 /MT, CFR China amidst supply shortage caused by the operation suspension at Alegria mine and Dique III, owned by Vale.
Leave a Reply