Brazilian pellet producer Samarco, a 50/50 JV between Vale and BHP Billiton, is expected to delay once again the restart of its activities, the company said.
The company expected to resume operations by H2 this year, but according to the document a restart by the second half of the year is “unlikely.” A media report by Estadao said a restart is more likely for 2018.
The reasons for the postponement include pending documents in the city of Santa Barbara, in the state of Minas Gerais, which has yet to sign a compliance letter stating Samarco’s ability to collect water in the town.
Samarco said the delay by the city of Santa Barbara in approving the compliance letter could put at risk over 20,000 positions, including both direct and indirect jobs.
According to a media report, one of two documents Samarco needs in order to resume operations is progressing well. However, the second document, a corrective operating license, hasn’t started to be processed by a state environment authority.