Brazilian mining and iron ore companies should spend a combined $2.2 billion by 2024 to decommission dams. The Brazilian Mining Institute, IBRAM, estimated that total investments to decommission dams due to regulations post-Mariana and post-Brumadinho may represent about 6 percent of the mining’s sector total Capex spending of $37.2 billion by 2024.
Julio Nery, sustainability and regulation director at IBRAM, told news media O Tempo that Minas Gerais state’s stricter regulations helped mining companies increase investments.
Mining and iron ore companies in Minas Gerais state have until February 25, 2022, to decommission all upstream dams like the one at Brumadinho. On a national level, Brazilian Mining Agency, ANM, banned, effectively from August 15 this year, the installation upstream dams.
O Tempo said Minas Gerais state, which is home to Vale and a number of steelmakers like Gerdau, flats producer Usiminas, among others, has about 53 dams that need to be decommissioned.