The growing number of Covid-19 cases in the states of Pará and Minas Gerais still pose a production risk for iron ore producer Vale, according to an analysis from Agora Investimentos.
Agora said the outbreak of Covid-19 in Parauapebas, in the state of Pará where Vale has a mine, is still high and might represent a risk for the company’s iron ore production in the city.
Agora said other cities where Vale has iron ore operations have also seen increased coronavirus cases.
“On the other hand, in the state of Minas Gerais, the number of daily cases started to decline, which, in our point of view, reduces the risk of a provisional halt in (iron ore) production in the region,” the report said.
“Miners are still exposed to halts related to Covid-19, while Vale’s 310-330 million mt/year production guidance still seem a challenging goal,” Agora said.