Brazilian pellet producer Samarco, a 50/50 joint venture (JV) between BHP Billiton and Vale, is “likely” to resume operations soon, according to a Brazilian official.
As it meets all its environmental and legal issues, the company could resume operations in two months, said Fernando Coelho Filho, Brazil’s minister of mines and energy, while attending the World Economic Forum in Davos, Switzerland this week.
However, Semad, the Minas Gerais state environmental authority, has not yet issued Samarco the final two licenses it needs to resume production.
The Brazilian ministry of mines and energy said last year a H1 2017 restart for Samarco was “probable,” while Vale and BHP Billiton anticipated a mid-2017 restart for their JV-owned pellet producer.
Market analysts said the minister’s comments could help Samarco restart its activities and bring some optimism for Samarco investors.