Brazil: Vale Concludes Decommissioning of First Tailing Dam

World's largest iron ore miner- Vale has completed decommissioning at one of the nine upstream tailing dams. The de-characterization at 8B dam located at Aguas Claras mine, in Nova Lima began in May 17 and does not offer any risk of breach anymore.

Vale underwent collapse at its dam at Corrego do Feijao mine in Minas Gerais in Brumadinho, Brazil on 25th Jan'19. Post which the Brazilian government ordered the miner to decommission its entire tailing dam built by the upstream method. On similar grounds, Vale is to decommission all such similar upstream dams in next three years.

In addition to 8B dam, the de-characterization project includes the following dams: Sul Superior (Barao de Cocais), Vargem Grande (Nova Lima), Fernandinho (Nova Lima), B3/B4 (Nova Lima), Grupo (Ouro Preto), as well as Forquilhas I, II and III (Ouro Preto). For some of these structures, downstream containment barriers are being built to enhance safety in the event of breach.

Towards end of Feb'19, Vale proceeded with decommissioning of Forquilha I, Forquilha II, Forquilha III and Grupo dams which was expected to affect around 3 MnT production loss in 2019. Also, Vale later announced decommissioning of the upstream Vargem Grande upstream dam, as per press release of Feb 4th.

Vale on 11th Nov reduced iron ore and pellet sales guidance to 307-312 MnT for 2019 amid dealing with the aftermath of the Brumadinho dam disaster.