Brazil: Vale to Partially Resume Operations at Vargem Grande Complex
World’s largest iron ore miner- Vale on 23rd July’19 received approval from National Mining Agency (ANM) for partial resumption of dry processing at Vargem Grande Complex. The company via press release informed that the National Mining Agency (Agência Nacional de Mineração – ANM) authorized the partial resumption of the dry processing operations at the Vargem Grande Complex.
The operations at the complex were put to halt on 20th Feb’19 by National Mining Agency (ANM) to protect the dam stability from occurrence of triggers. The complex is expected to resume within 24 hours, and hence adding 5 MnT of production in 2019.
Vale underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan'19. Post which the Brazilian government ordered the miner to decommission its entire tailing dam built by the upstream method including Vargem Grande Complex.
The miner has resumed operations at its Brucutu mines in June’19, recovering 30 MnT of production capacity. However, regarding the 60 MnT currently curbed, the miner expects 30 MnT of dry processing production to resume towards end of CY19 and the remaining 30 MnT, which includes wet processing, is estimated to return in about two to three years.
Vale 2019 Guidance
--Vale kept the sales guidance at 307 MnT- 332 MnT and informs that its current sales volume will be observed towards midpoint of the range.
--Vale reviewed its pellet production guidance at 45 MnT against 60 MnT announced on Vale day.
Spot iron ore prices fell amid easing concerns
Amid easing concern by largest miner, the sport iron ore prices witnessed at USD 118.1/MT, CFR China, yesterday (23rd June) as against USD 122/MT, CFR China witnessed towards last weekend.
Vale iron orre and pellet production down 14% in Q2 CY19
Vale total iron ore production for the quarter stood at 64.1 MnT, down 12% as against 72.9 MnT in Q1 CY19. The production was affected due to dam rupture and unusual weather in Northern system in April and early May. The miner recorded decline in total pellet output for the quarter Q2 CY19 at 9.1 MnT, down 25% compared to 12.2 MnT in Q1 CY19. Vale pellet production suffered a setback due to stoppage at Southern system pellet plants, abnormal rain in the Northern and Southeastern Systems as well as maintenance carried out at the Tubarão plants.
Vale total iron ore and pellet sales picked up 4% to 70.7 MnT as compared to 67.7 MnT a quarter ago. Vale recorded iron ore sales at 61.9 MnT for Q2 CY19, up 12% on quarterly basis as compared to 55.4 MnT in Q1 CY19. The rise in sales is attributed to increase in shipments in Northern systems and resumption at Brucutu mines.
source: SteelMint
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