Anglo American halted iron ore production for a second time in March at its Minas-Rio site following another slurry pipeline burst.
The halt was announced on Thursday following a burst at a 529-km (328.7-mile) iron ore slurry pipeline running between the states of Minas Gerais and Rio de Janeiro. Anglo estimated the halt will continue for at least one month until tests are completed to guarantee the integrity of the slurry pipeline, the company said.
Anglo American said about 174 mt of “iron ore pulp”, which is made up of 30 percent water and 70 percent iron ore, leaked into a local river after the March 29 incident.
“As a result, Anglo American has suspended the operations and sees no alternative other than putting its employees in some areas of operations on collective leave, or mandatory vacation, with an expected period of 30 days,” the company said in a statement.
“This event is of lesser extent than the one that occurred on March 12, and is considered 100 percent solvable,” the company said.
SteelOrbis has learned Anglo American has some 700,000 mt or less of iron ore inventory to supply to customers, however, it remains uncertain if the volume would be enough to sustain the company for over a month.
Anglo American’s spokeswoman Mariana Rosa was not immediately available on Monday to comment the matter.