LEADERSHIP

Iron ore hits $100/t as Vale warns of new dam risk

The iron ore spot price continued to rally on supply fears and Vale alerting authorities in the Brazil state of Minas Gerais after movement was detected on the northern slope of a pit at the Gongo Soco mine last week.

Staff reporter
Vale is still dealing with the fallout of January's dam collapse

Vale is still dealing with the fallout of January's dam collapse

The MySteel 62% Australian iron ore fines price added another 2.5% on Friday to US$100.35 per tonne, a fresh five-year high.

Vale said Gongo Soco had been closed since 2016, but its dam was just 1.5km from housing. The alert level was raised to 2 in February and to 3 in March.

"It should be noted that there are no technical elements so far that point towards an eventual slide of the northern slope of the Gongo Soco mine, which could act as a trigger for a breach of the Sul Superior Dam," Vale said.

"Even so, Vale is reinforcing the alert and readiness level for a worst-case breach scenario."

Vale said it would distribute leaflets and broadcast information on local radio to inform local communities.

An evacuation drill was held on the weekend.

"Vale reiterates its commitment to the region's residents and will keep them informed about the next actions and events that involve their safety," the company said.

"The pit and the dam are monitored 24 hours a day."

It is estimated more than 300 people were killed in late January when a dam at Vale's Córrego do Feijão mine collapsed.

Marex Spectron research analyst Hui Heng Tan said short-term supply conditions were bearish, while he was "marginally bearish" on short-term demand due to weaker steel prices and margins.

"Short-term macroeconomic conditions remain bullish. Downstream steel demand (manufacturing and construction) remains firm, with the latest construction data reflecting improving construction activities," he said.

 

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.