Mining Companies Like Vale, CSN, Usiminas, and Vallourec Suspend Production in Minas Gerais Due to Rainfall

Written by Roberta Souza

Published on 12/01/2022 at 12:40

Foto: reprodução

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Heavy Rains in Minas Gerais Disrupt Production of Mining Companies

The state of Minas Gerais has been hit by such heavy rains that the production of mining companies had to be halted. Among the suspended operations are Vale, one of the largest iron ore suppliers in the world, CSN, Usiminas, and Vallourec, whose production was interrupted by the courts after a dam overflowed.

“Short-Term Suspensions”

The chairman of the Board of Directors of the Brazilian Mining Institute (Ibram), Wilson Brumer, states: “I believe these are short-term suspensions, and I do not foresee potential changes in projections. My perception, in the case of exports, is that there are stocks in ports to meet demand. And in the case of the domestic market, there are stocks at the plants”.

January is typically rainy, though this year the rains have been more pronounced, it is still normal, according to analysts from BTG Pactual. However, they agree with the suspensions in Minas Gerais: “After past dam incidents, we welcome the zero-tolerance approach that mining companies are adopting in the country to minimize operational risks.”

Closed Mines

In the Southeast System, Vale’s Mariana and Brucutu mines have been suspended. In the South System, due to the interdiction of the BR-040 and MG-030 roads, overall production of the complexes has been halted. The Northern System of the mining company has not been affected and continues to operate normally. BTG emphasized that one-third of Vale’s capacity is currently suspended.

In the case of CSN, production at its main mine, Casa de Pedra, located in Congonhas, Minas Gerais, has been affected. Usiminas has suspended all iron ore production so far.

Small Mines Also Affected

In addition to the large mining companies, small-scale mines are also waiting for the rains to end before restarting production. One example is Atlântica Mineração, which had to suspend its expansion works due to the situation. “We have two mines ready to start operations, but we can’t even take the equipment there, as we need to make some improvements to the access roads,” says the company’s director, Maurício Índio do Brasil.

Mining Companies Like Vale, CSN, Usiminas, and Vallourec Suspend Production in Minas Gerais Due to Rainfall

Heavy Rains in Minas Gerais Disrupt Production of Mining Companies

See Also:

“Short-Term Suspensions”

Closed Mines

Small Mines Also Affected

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Mining Companies Like Vale, CSN, Usiminas, and Vallourec Suspend Production in Minas Gerais Due to Rainfall

Heavy Rains in Minas Gerais Disrupt Production of Mining Companies

See Also:

“Short-Term Suspensions”

Closed Mines

Small Mines Also Affected

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