Vale of Brazil resumes work in the largest mine in the state of Minas Gerais


FILE PHOTO: A view of the entrance to the Brucutu mine, owned by the Brazilian mining company Vale SA, in São Gonçalo do Rio Bene, Brazil, on February 4, 2019. REUTERS / Washington Alves

SÃO PAULO, Brazil (Reuters) – Brazilian mining giant Vale SA said on Tuesday that a local court had cleared its way to resuming operations at its Brucutu mine, its largest iron ore complex in the state of Minas Gerais, Brazil's mining center. country for a long time.

Production in Brucutu has been suspended since early February, when a court order suspended the adjacent Laranjeiras dam, soon after the collapse of a dam in the Valley about 150 km away, killing about 300 people.

Laranjeiras receives Brucutu waste, which has an installed capacity of 30 million tons of iron ore, or about 8 percent of Vale's planned annual production in Brazil before the Brumadinho tailings dam disaster.

Vale's shares rose 2.8 percent in Sao Paulo on Tuesday to 51.90 reais each, recovering from a poor performance on the previous day as another court decision closed two more dams operated by the company.

But the miner also received favorable news on Monday with a decision by a Rio de Janeiro judge to resume iron ore shipment at the Guaíba Island export terminal in Mangaratiba, where the company ships about 40 million tonnes of iron ore per year.

Vale said it hoped local authorities in the Brucutu mine region would be notified of the court's decision and allow it to resume work on the complex.

Report of Marcelo Teixeira; Edition by Sandra Maler

Our standards:The Thomson Reuters Trust Principles.


Source link