Brazilian miner and iron ore producer Vale said this week it might see a delayed recovery in production capacity, amid the Covid-19 outbreak globally. In a presentation to investors, the company said it might deal with unforeseen costs related to suspending third-party contracts in “non-essential projects.”
“Vale has been resilient, but uncertainties still remain,” the company said.
The company said impact of Covid-19 on both iron ore output and sales has been “limited.” However, the “entire ecosystem has been highly impacted by the restrictions imposed by the Covid-19.”
Vale estimated that existing lockdown restrictions in countries like Peru, where Shougang Hierro Peru halted iron ore output, South Africa, India and Malaysia will reduce iron ore output by 18 million mt/year globally.
In a separate document filing, Vale said it attested the safety of 78 dams in Brazil. Miners and iron ore companies are demanding to send Brazilian Mining Agency (ANM) a document called declaration of stability (DCE), attesting a dam is safe.
Vale said other nine dams remain halted. Those dams are at a risk level 2 or 3, in which level 3 indicates a higher change of a dam collapse.
The halted dams include: B3/B4 (Mar Azul mine), Capitão do Mato (Capitão do Mato mine), Doutor (Timbopeba mine), Forquilha I, Forquilha II and Forquilha III (all located at the Fábrica mine complex), Grupo (Fábrica mine complex), Sul Superior (Gongo Soco mine) and Sul Inferior (Gongo Soco mine).