CAPITAL MARKETS

Iron ore, miners lower

The iron ore price and equities have fallen after Vale announced yesterday it was allowed to partially resume operations at its Vargem Grande complex in Brazil, which could add 5 million tonnes to production this year.

Staff reporter
 Rio Tinto’s Silvergrass mine in Western Australia’s Pilbara. Image: Rio Tinto

Rio Tinto’s Silvergrass mine in Western Australia’s Pilbara. Image: Rio Tinto

Rio Tinto (LSE: RIO) was one of the biggest fallers yesterday on the FTSE100, down 4.6%.

Vale said it had been authorised to partially resume dry processing operations at Vargem Grande, which had been suspended since February 20 to prevent "occasional triggers that could affect dam stability". 

Vale said the National Mining Agency's authorisation would enable the partial resumption within 24 hours and add 5 million tonnes of production in 2019.

BHP (ASX: BHP) was about 2.4% lower and fellow Pilbara iron ore producer Fortescue Metals Group (ASX: FMG) was down 5.6% in afternoon Australian trade today.

Vale (BZ: VALE3) had also closed 2.1% lower in Brazil yesterday.

The 62% fines iron ore price, which was above $120/t earlier this week, lost about 2% to $115.40/t, according to MySteel.

Gold was sitting close to US$1,422 an ounce on the spot market earlier.

Newmont Goldcorp (NYSE: NEM), which hit a 52-week high on Tuesday, was off 0.8% in New York yesterday as it announced a 14c quarterly dividend.

It will release its June quarter operational and financial results before market open today.

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