Vale lifts 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.
Earlier on 11th March, the miner was ordered to shut operations at Guiaba Island Terminal (TIG), on receiving notice from the Mangaratiba city government in Rio de Janeiro.
Last week, the miner was ordered by Brazilian government to suspend operation at Timbopeba mine in Minas Gerais state. The court also ordered to suspend operations at Doutor dam, which receives tailing from Timbopeba mines. However, the dam was inspected on 14th Mar’19 by the technicians of National Mining Agency, who verified the structure as risk free. The mine produces around 12.8 MnT of iron ore per year. As per court’s orders, in case of mines failure to follow the orders, a fine of USD 131,000 per day will be imposed upon the miner.
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 (Minas Gerais). 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.
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