The press release reads as follows “This probability reduces the possibility of impact on the Sul Superior dam. Marcelo Barros, Vale's COO, explains that "today, we have more elements to analyze the shell behavior; and it shows a slide into the extraction site. Thus, there is a great possibility that the slope remains inside the extraction site, without major consequences."
Earlier, Vale identified a movement at the North Slope of the Gongo Soco mine, which is inactive since 2016. The vibration so produced was expected to adversely affect the Sul Superior dam, which is located approximately 1.5 km away from the slope and stores waste from mining operations. As per Vale estimates made earlier, the pace of movement in the Gongo Soco mine was expected to result in rupture of dam. However, Vale has recently announced lowered risk of the dam rupture.
Dalian iron ore futures fell to 748 yuan/MT, on Wednesday (29th May’19) as against reaching record high levels of 774.5 yuan/MT on 28th May’19.