Vale – Page 21 – Republic of Mining

The Global Iron Ore Crisis: What’s Next in Four Charts – by Krystal Chia and Martin Ritchie (Bloomberg/Yahoo – February 12, 2019)

February 12, 2019

https://finance.yahoo.com/

(Bloomberg) — The global iron ore market is reeling from the sustained and expanding impact of Vale SA’s deadly dam breach last month, which has roiled prices and spurred concerns about a shortage.

Since the initial incident in Brazil in late January, the top producer has announced supply cuts of as much as 70 million tons, although it’s said it will try to offset some lost production.

As the drama unfolds, investors, users and producers are grappling with a host of unknowns, starting with how much supply Vale will actually lose this year and next as executives seek to respond to what’s likely the greatest challenge the company has faced. There are other critical variables too, which will help to influence the direction of prices, which sank on Tuesday for a second day.

Exclusive: Brazil miner Vale knew deadly dam had heightened risk of collapse – by Stephen Eisenhammer (Reuters U.K. – February 11, 2019)

February 12, 2019

https://uk.reuters.com/

BELO HORIZONTE, Brazil (Reuters) – Vale SA, the world’s largest iron ore miner, knew last year that the dam in Brazil that collapsed in January and killed at least 165 people had a heightened risk of rupturing, according to an internal document seen by Reuters on Monday.

The report, dated Oct. 3, 2018, classified the dam at Brumadinho in the state of Minas Gerais as being two times more likely to fail than the maximum level of risk tolerated under internal guidelines.

The previously unreported document is the first evidence that Vale itself was concerned about the safety of the dam. It raises questions as to why an independent audit around the same time guaranteed the dam’s stability and why the miner did not take precautions, such as moving a company canteen that was just downhill from the structure.

Deadly dam burst prompts investors to review mining stocks – by Jennifer Thompson and Chris Flood (Financial Times – February 10, 2019)

February 11, 2019

https://www.ft.com/

The collapse of a dam at an iron-ore mine in Brazil just over two weeks ago has prompted investors to review holdings in the business’s owner and triggered questions over how to manage risks and improve practices.

The burst at the Córrego do Feijão mine in Brumadinhoon January 25 is one of South America’s worst disasters: at least 150 people died and nearly 200 are still missing.

The dam was operated by Vale, the world’s largest iron-ore producer, and it held back tailings — streams of waste from mines. There are several thousand similar dams worldwide.

A Tidal Wave of Mud – by Shasta Darlington, James Glanz, Manuela Andreoni, Matthew Bloch, Sergio Peçanha, Anjali Singhvi and Troy Griggs (New York Times – February 9, 2019)

February 9, 2019

https://www.nytimes.com/

A mining dam collapsed and buried more than 150 people. Now Brazil is casting an anxious eye on dozens of dams like it.

BRUMADINHO, BRAZIL — Luiz de Castro was installing lamps at a mining complex in Brazil late last month when a loud blast split the air. He figured it was just a truck tire popping, but a friend knew better. “No, it’s not that!” the friend said. “Run!”

Dashing up a staircase, caked in mud and pelted by flying rocks, Mr. Castro clambered to safety. But as he watched, a wall of mud unleashed by the collapse of a mining dam swallowed his co-workers, he said. Tiago, George, Icaro — they and at least 154 others, all buried alive.

The deluge of toxic mud stretched for five miles, crushing homes, offices and people — a tragedy, but hardly a surprise, experts say. There are 88 mining dams in Brazil built like the one that failed — enormous reservoirs of mining waste held back by little more than walls of sand and silt. And all but four of the dams have been rated by the government as equally vulnerable, or worse.

‘Time bomb’ warning on mining dam disasters – by David Shukman (BBC News – February 7, 2019)

February 8, 2019

https://www.bbc.com/

The catastrophic collapse of a dam at a mine in Brazil has exposed a darker side of an industry that the world depends on. At nearly 800 sites across the country and thousands more around the world, dams contain huge loads of mining waste.

One British scientist, Dr Stephen Edwards of UCL, has warned that “we are sitting on a time bomb”. He told BBC News that further disasters were inevitable.

Over the last few days in the heart of Brazil’s mining belt, I’ve been investigating two very different sites where the risks of massive damage seem plausible. One is a vast lake of sludge perched high above a nervous community; the other is an abandoned gold mine at risk of leaking poisons.

Why are there dumps of mining waste?

Blast may have triggered quake in Sudbury: Vale – by Donald Macdonald (Sudbury Star – February 8, 2019)

February 8, 2019

https://www.thesudburystar.com/

No serious damage to Garson Mine or nearby Nickel Rim Mine, companies say.

Work is proceeding at Garson Mine after an earthquake Wednesday that originated at the Vale site but was felt by people residing more than 10 kilometres away.

Vale spokesperson Angie Robson said the company experienced a 2.9 magnitude seismic event at the 5,200 level of the mine shortly after 5 p.m. Fortunately, “no employees were injured as a result of this event,” she noted, and “work is continuing as normal, except in restricted areas of the mine.”

Robson said there was no damage to mobile equipment, “although there is some displaced rock that needs to be addressed, as well as some repair work to infrastructure in the affected area of the mine.”

Brazil evacuates towns near Vale, ArcelorMittal dams on fears of collapse – by Marta Nogueira and Pedro Fonseca (Reuters U.K. – February 8, 2019)

February 8, 2019

https://uk.reuters.com/

BELO HORIZONTE/RIO DE JANEIRO (Reuters) – Some 700 people were evacuated early on Friday from Brazilian towns near two separate tailings dams operated by Vale SA and ArcelorMittal on mounting fears of a recurrence of last month’s deadly dam burst nearby.

The collapse two weeks ago unleashed an avalanche of mud that engulfed nearby buildings and farms, killing an estimated 300 people in Brazil’s deadliest mining disaster.

As evidence mounted that Vale missed warnings of trouble at the dam in the town of Brumadinho, pressure has risen on the firm and other mining companies to bolster safety measures to avoid a recurrence.

Brazilian state cancels Vale licenses at two mines in wake of disaster – by Ana Mano and Christian Plumb (Reuters U.S. – February 6, 2019)

February 7, 2019

https://www.reuters.com/

SAO PAULO (Reuters) – The Brazilian state of Minas Gerais canceled Vale SA’s license to operate a dam at one of its largest mines, the company said on Wednesday, following the collapse of another dam in the state that killed an estimated 300 people.

Vale has come under intense public pressure since the Jan. 25 dam burst, with some politicians and prosecutors calling for criminal prosecution and a management shakeup, especially since it happened less than four years after another fatal dam burst in Minas Gerais.

Vale shares on Sao Paulo’s Bovespa exchange fell 4.9 percent to a seven-day low of 42.46 on Wednesday, while its U.S. traded ADRS slumped 6.2 percent.

Surging Iron Ore Prices Will Hurt China’s Economy While Benefiting Australia And Brazil – by Jim Collins (Forbes Magazine – February 6, 2019)

February 7, 2019

https://www.forbes.com/

As we enter the Year of the Pig in the Chinese calendar, the performance of iron ore has been, well, piggish of late. Coal and iron ore are the two key ingredients in the production of steel in the Bessemer process. As popular as Alibaba, Tencent’s WeChat, iQiyi and countless other Chinese apps may be, steel production is still the best determinant of the health of the Chinese economy.

Chinese government estimates place 2018 steel output at 923 million tonnes, an 11% increase over 2017’s figure. October’s output of 82.552 million tonnes reflected an all-time record for the Chinese economy.

So, all those out-of-context, sentiment-based data points that seem to be showing a slowdown in the Chinese economy–PMI data for example–really are giving a false positive for the all-important “China’s economy is slowing” narrative that so many market observers in the U.S. love to push.

RPT-COLUMN-Vale disaster makes miners’ image problem worse – by Clyde Russell (Reuters U.S. – February 6, 2019)

February 6, 2019

https://www.reuters.com/

CAPE TOWN, Feb 6 (Reuters) – The response to the horrendous dam collapse at a mine owned by Brazil’s Vale has focused on iron ore prices and how a disaster that will likely claim more than 300 lives occurred, and what must be done to make sure this doesn’t happen again.

These are valid concerns, but the risk of focusing on the immediate issues is that the much larger problems of the mining industry are once again glossed over. Namely that miners aren’t trusted and suffer from a serious image problem.

It may seem somewhat trivial to talk about image in the face of such a human tragedy, but mining’s poor image across a range of stakeholders is the major issue for the industry.

Vale Iron-Ore Mine Halt Risks `Incremental Supply Shock’ – by R.T. Watson (Bloomberg News – February 4, 2019)

February 5, 2019

https://www.bloomberg.com/

Vale SA said it’s temporarily halting some operations at its Brucutu mine, potentially causing a production loss of about 30 million metric tons of iron ore a year — a move that an analyst said could cause “incremental supply shock.” Iron ore in Singapore climbed.

The move is in compliance with a Brazilian court order issued to help improve safety after one of Vale’s tailings dam in Minas Gerais state collapsed in late January, killing more than 130 people and leveling part of a town.

The output cut is on top of the planned 40 million ton curbs that the company will implement as it decommissions dams similar to the one involved in the fatal accident.

Brazil Dam Catastrophe Sounds Alarm for U.S. Waste Ponds (Bloomberg Environment – February 4, 2019)

February 4, 2019

https://news.bloombergenvironment.com/

A mining dam failure similar to the one that killed more than 100 people in Brazil could happen in the U.S., according to a mine engineer who consults with the government.

At the root of the risk is a quilt of differing state regulations, sloppy dam construction, lax maintenance, neglect of decades-old dams that are wrongly assumed to be stable, and stronger storms dumping water into dams that weren’t designed to handle the weight, said James Kuipers, who consults with the Environmental Protection Agency and state governments on tailings dams, which hold mining waste.

“It can happen here,” Kuipers told Bloomberg Environment. But the industry says tailings dams in the U.S. are safer than they’ve ever been, thanks to advances in technology and design.

After Freeport, Indonesia eyes 20% of nickel [PT Vale Indonesia] firm’s shares (Jakarta Post – February 4, 2019)

February 4, 2019

https://www.thejakartapost.com/

After gaining control of 51.23 percent shares of gold and copper miner PT Freeport Indonesia, the government is eyeing to gain a 20 percent stake in publicly listed nickel miner PT Vale Indonesia (INCO).

“We are certainly interested, but we have not assigned a company yet [to represent the government],” the SOEs Ministry’s undersecretary for mining, strategic industries and media affairs, Fajar Harry Sampurno, said in Jakarta on Friday as quoted by kontan.co.id.

The Energy and Mineral Resources Ministry’s mineral director, Yunus Saefulhak, said the ministry had received INCO’s divestment proposal letter. He added that INCO had submitted its report to the Finance Ministry while sending its offer to the SOEs Ministry.

How Brazil’s mining tragedy could shake up Australia’s iron ore market – by Kylie Purcell (Your Money – February 1, 2019)

February 1, 2019

Your Money

Australia’s mining sector saw enormous financial gains this week – but it follows a tragedy that raises serious questions about the operations being run by some of the world’s most powerful mining corporations.

Shares in Australia’s iron ore sector surged Wednesday after news that Vale, the world’s biggest iron ore producer, would close some operations following a dam collapse in Brumadinho that left more than 100 dead and hundreds more missing.

Should the death toll increase, the catastrophe could mark Brazil’s deadliest ever mining accident and the country’s second iron ore mining disaster in recent years.

Brazil’s Vale knew of risk to area hit by deadly mine disaster: Folha de S.Paulo (Reuters U.S. – February 1, 2019)

February 1, 2019

https://www.reuters.com/

RIO DE JANEIRO (Reuters) – Brazil’s Vale (VALE3.SA) knew as recently as last year that some of the areas hit by last week’s deadly mining disaster were at risk if its tailings dam burst, according to an internal Vale study published by a local newspaper on Friday.

The study seen by newspaper Folha de S.Paulo represents a fresh embarrassment for the world’s largest iron ore miner, which has come under intense pressure over the burst tailings dam at its Corrego do Feijao mine last Friday.

With 110 people confirmed dead and another 238 missing, according to a firefighters’ count on Thursday evening, the tailings dam collapse in the town of Brumadinho could be Brazil’s deadliest mine disaster.