Brazil miner Samarco says resuming operations this year challenging

It’s been about a year now when the serious environmental accident took place in Brazilian history, the Gualaxo do Norte river in the south-eastern state of Minas Gerais still continue show the effects of.

The dam’s collapse killed 19 people and resulted in Brazil’s worst environmental disaster, with toxic mud polluting rivers and flowing hundreds of miles to the Atlantic Ocean.

Samarco is a 50:50 joint venture between Vale and Australia’s BHP Billiton.

Brazilian iron ore miner Samarco expressed that resuming operations this year will be challenging, though there remains a small possibility, Roberto de Carvalho, CEO, announced.

The company that halted operations in November 2015 after accident; said discussions are going on with the government to obtain the required environmental licenses.

“It is becoming increasingly difficult to start operations this year,” Carvalho explained. Every passing day is making it worse, he said according to the reports.

Addressing lawmakers at the Minas Gerais state assembly, Carvalho said mayors in the areas affected by the accident support the company’s efforts to resume operations because it would create jobs.

The production halt has been damaging the negotiations aimed at a restructuring contract with creditors, as the miner is under USD 3.8 billion in outstanding debt, said the executive.

“We have been in talks with banks and bondholders, but the basic condition is that the company resumes operations,” said Carvalho.

Samarco Iron Ore and Pellet Production Details:

Fig in MnT
Source: Company Reports