BULKS

Vale halts Viga plant

Brazil-based iron ore major Vale SA (BZ: VALE3) has announced another setback in Minas Gerais state, saying on Friday it would temporarily halt the Viga concentration plant after noticing an “inconsistency” in documents relating to the operating permit.

Staff reporter
 Viga is expected to add to Vale’s iron ore pellet feed. Image: Maria do Socorro

Viga is expected to add to Vale’s iron ore pellet feed. Image: Maria do Socorro

Vale took over Viga at the start of this month as it completed the acquisition of Ferrous Resources do Brasil, which was expected to immediately increase Vale's production with 4 million tonnes per year of pellet feed at competitive operating costs, once the Viga 4 project successfully ramped up.

"The operations at the Viga mine are not affected by this decision and will continue as usual," Vale said, adding the operation permit bore no relation to the safety of the tailings dam or the Ferrous operations.

It estimated the impact of temporarily halting the Ferrous operations was about 330,000t of iron ore production per month.

Vale had announced in December the US$550 million agreement to acquire Ferrous, which owned and operated iron ore mines close to Vale's operations in Minas Gerais.

The iron ore price for 62% fines surged above $120/t last month on supply constraints after Vale's fatal Brumadinho tailings dam failure in January and various issues for producers BHP and Rio Tinto in Western Australia's Pilbara earlier this year.

It last closed up 1.13% to $89.55/t, according to MySteel, having fallen from the five-year peak due to increased US-China trade tensions and Vale recently being allowed to bring some shuttered production back online.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.