According to the recent data released by Brazil Customs, Brazil has exported around 30.2 MnT iron ore in Jul’16. Iron ore exports increased by 4.1% in Jul’16 against 29 MnT in the month of Jun’16.
Alongside, Brazilian iron ore export volumes on annual basis significantly drop down by 11% in the same consecutive month prior this year.
In the first seven months of 2016, the country exported 207.03 MnT iron ore, up by 4.9 MnT when compared with same period in 2015.
The average export price for Brazilian iron ore in Jul’16 was around USD 32.9/MT FoB Brazil, down by USD 4.4/MT from Jun’16 as it was 37.3/MT. Meanwhile, export prices significantly drop down by 17.9% on Y-o-Y as it was USD 40.1/MT in the same consecutive month last year.
Updates on Brazil’s Samarco dam disruption case
Brazil’s Samarco, a 50:50 joint venture of BHP Billiton & Vale, is still facing operational risks and is unlikely to resume before the end of this year.
Last month, BHP Billiton and Vale SA appealed in a Brazilian court to reinstate a USD 6 billion for a public civil claim from Brazilian authorities over last year’s Samarco iron ore mine disaster. However, Brazil government expect the cost of the work to reach USD 6.23 billion, though the mining companies expected the total cost to be significantly less.
Now, the Brazilian court suspended the previous judicial endorsement of the Samarco dam and issued an interim order on 27 Jul’16 suspending the Federal Court of Appeal’s ratification of the compensation and restoration deal.
Now, the Samarco disaster continues to weigh on BHP as a charge of up to USD 1.3 billion to cover the costs of a dam disaster would be paid by BHP Billiton.
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