Vale shares jump on iron prices despite losing certifications, asset freeze (Reuters U.S. – April 1, 2019)

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BRASILIA (Reuters) – Brazilian miner Vale SA said on Monday it failed to obtain stability certificates for 13 dams under review following the rupture of another dam in January that killed hundreds, although its shares rose on strong global iron ore prices.

The world’s largest iron ore miner also disclosed in a securities filing on Monday that a court had frozen an additional 1 billion reais ($258.42 million) in assets over potential damages related to the evacuation of its Vargem Grande dam.

Despite the disclosures, Vale shares jumped to their highest point since the Jan. 25 disaster, rising 3.6 percent to 52.79 reais.

Iron ore future contracts for May delivery rose as much as 5.2 percent on Dalian Commodity Exchange to hit a seven-week high on Monday, on strong economic data from China and supply concerns after Rio Tinto cut its 2019 forecast for iron ore shipments.

Vale said neither the lack of certificates nor the asset freeze would affect its iron ore and pellet sales forecast announced last week.

For the rest of this article: https://www.reuters.com/article/us-vale-sa-disaster/vale-shares-jump-on-iron-prices-despite-losing-certifications-asset-freeze-idUSKCN1RD287

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