Covid-19 to cost Vale $500 million

Thursday, 30 April 2020 23:50:22 (GMT+3)   |   Sao Paulo
       

The effects of Covid-19 should cost Brazilian miner Vale $500 million (BRL 2.7 billion) in 2020, according to a media report by Folha. The cost estimate includes suspended operations, humanitarian aid and benefits to employees.

Vale also said the pandemic could have an effect on the company’s ability to resume operations, which were halted during the Brumadinho disaster. They might also delay equipment repairs, which in turn might affect output levels.

Vale also said in a call with investors that the Covid-19 pandemic has delayed dam inspections. Vale first expected inspection at its Brucutu mine to be completed in Q1. Now, Vale anticipates a May timeline for inspections to be made.


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