Despite the challenges surrounding Brazilian pellet producer Samarco, a 50/50 JV between Vale and BHP Billiton, the Australian shareholder is confident the struggling producer could restart in 2017.
BHP Billiton’s president of mining in the Americas told Reuters on Thursday that the company is currently undergoing “complex” negotiations with Vale and other stakeholders to restart Samarco next year.
Daniel Malchuk told Reuters BHP remains "confident" in a 2017 restart for Samarco.
Samarco missed two bond interest payments and is said to be soon running out of cash. Several of the estimates for the company’s restart were postponed.
The Reuters media report noted a restart for Samarco is “crucial” to help it start paying off increasing debts and other liabilities.
Despite BHP’s comments that Samarco could restart in 2017, the commercial viability of Samarco remains uncertain, the media report said.
Malchuk said “nothing is guaranteed,” since licensing authorities, Samarco workers and even debt holders should all “be on board” for the company’s restart plans to be possible.
“I continue to be confident that there must be a solution,” Malchuk said. “But I can't say that everyone will.”