Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The Brazilian city of Brumadinho has suspended Vale’s operating license after health inspectors discovered company sites haven’t adhered to government-mandated social distancing protocols.


Brumadinho’s Mayor Avimar de Melo Barcelos also ordered the iron ore miner’s contractors to suspend activities, according to media reports.


Talks between Vale and the city, which involve coming to some sort of compromise that ensures employee safety, are ongoing, a company spokesperson told Davis Index.


Vale’s mining production in the city has been shelved ever since one of the company’s dams fatally collapsed in January 2019, for which the spokesperson confirmed the two sides are currently negotiating its repairs.


Vale revised it 2020 production guidance to 310-330mn mt of iron ore fines, 35-40mn mt of pellets, and 360,000- 380,000mt of copper. The company’s nickel production, excluding its New Caledonia mine, is expected to reach 180,000-195,000mt.

Last week, Vale announced plans to recover 44mn mt of halted capacity by 2021. 


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