Brazil miner and iron ore producer Vale could lose up to 100 million mt of iron ore output per year in the next three years in the state of Minas Gerais due to pending environmental licenses, the company told SteelOrbis. The volume represents half of the company’s 200 million mt/year capacity in the state.
Vale said 88 projects are being analyzed by local environmental authorities, including a connected dam for its 30 million mt/year Brucutu mine, the company’s second largest mine in Brazil. The project, known as Barragem Norte or Norte dam, would serve as an iron ore waste dam for Vale’s Brucutu mine, located in the city of Sao Goncalo do Rio Abaixo.
“Just the halt of Brucutu, Vale’s largest mine in the state [of Minas Gerais], would account for a loss of about 1.3 percent of Minas Gerais’ GDP,” the company argued.
Vale said it’s interested in keeping current output levels.
"The company will continue looking for alternatives to maintain its level of production and preserve market share," it said.
The current situation of Vale in Minas Gerais as well as the company’s future in the state were discussed earlier this week at a public hearing involving the iron ore producer and the state’s mines and energy commission.