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Brazilian court suspends operations at 2 more Vale dams - Report

Mining News - Published on Wed, 20 Mar 2019

Image Source: Reuters
Reuters reported that a Brazilian court has ordered Vale SA, the world’s largest iron ore miner, to suspend operations at two more dams, demanding that it prove the structures are stable. The court decision dated Friday is the latest in a series of orders forcing Vale to halt operations at various dams that contain the muddy detritus of mining operations after one such barrier collapsed in January, killing some 300 people. Vale has faced growing pressure to prove that its remaining dams are safe. The fatal disaster in the town of Brumadinho was the second of its kind in four years.

According to data compiled by Reuters, the company’s iron ore production is expected to be 82.8 million tonnes, or 21 percent, lower than was planned for the year due to the restrictions on its Brazil operations, including the planned decommissioning of all its upstream dams.

Karel Luketic, analyst for steel, iron ore and pulp at XP Investimentos, said on Monday he does not expect the impact on Vale’s earnings to be as large because iron ore prices are rising, which could compensate for lower volumes.

The miner said in a statement that the latest suspension, impacting its Minervino and Cordao Nova Vista dams, will not have a significant impact on its operations. It said that mining waste was already being shipped to “other structures,” which it did not identify.

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Posted By : Rabi Wangkhem on Wed, 20 Mar 2019
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