Anglo American plans to replace a 4-kilometer (2.5-mile) section of a slurry pipeline at its Minas-Rio iron ore project, the company said this week.
The Minas-Rio iron ore project is made up of an open pit mine, a beneficiation plant producing high-grade pellet feed, and a 529kilometerlong (328milelong) pellet feed-transporting pipeline connecting different cities in the states of Minas Gerais and Rio de Janeiro.
“Detailed pipeline inspection work is on track,” Anglo American said, adding that a 4-kilometer section of the pipeline, where the leaks occurred, will be replaced as a precautionary measure and is expected to be completed in Q4.
Anglo also expects to resume operations by Q4 this year; however, a restart is yet subject to the scrutiny of local authorities.
“There is no change to the earnings impact of the pipeline incident from the guidance provided in April, with a 2018 loss of $300-$400 million in EBITDA,” the company added.