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Vale uses converted ships despite disaster

Logistic News - Published on Tue, 11 Jun 2019

Image Source: Financial Times
Financial Times reported that Vale, the Brazilian miner grappling with the fallout from a deadly dam burst, is still using converted oil tankers to carry iron ore even after a ship it chartered sank in one of the biggest maritime disasters of recent years. The Stellar Daisy, which was operating under long-term charter with Vale, sank 1,700 nautical miles off the coast of Uruguay in March 2017 while on a voyage from Brazil to the Chinese port of Qingdao. An investigation into the sinking of the Stellar Daisy highlighted some of the concerns about using the ships.

The official accident report published earlier this year by the Maritime Administrator of the Marshall Islands, where the ship was registered, found catastrophic structural failure had caused the Stellar Daisy to sink. Laden with 260,000 tonnes of iron ore, the key ingredient needed to make steel, it is one of the largest vessels to be lost at sea. Only two of the 24 crew members were rescued.

The fact that the company is still using converted oil tankers is likely to surprise many analysts and investors as none of its main rivals, a group that includes Anglo American, BHP Group and Rio Tinto, use converted Very Large Crude Carriers because of concerns about safety.

The Brumadinho disaster was the second such accident involving the company in less than four years and has raised questions about Vale’s culture. Last week, the Rio de Janeiro-based company announced the creation of a Safety and Operational Excellence Department.

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Posted By : Rabi Wangkhem on Tue, 11 Jun 2019
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