Brazil: Vale Suspends Operations at an Iron Ore Mine; Prices Up

Vale- World largest iron ore mine in a press release informs that it suspended works in one mining front of Brucutu mine, of Sao Goncalo, State of Minas Gerais. Action taken against the company will not impact Brucutu mine's production.

The suspension follows a decision from Brazil's National Mining Agency ("ANM" - Agencia Nacional de Mineracao), based on its understanding that one of the operating mining fronts exceeds the mineral reserve limit approved by the agency to the respective area.

Earlier the miner had resumed operations at its Brucutu mines in June'19, recovering 30 MnT of production capacity. However, regarding the 60 MnT currently curbed, the miner expects 30 MnT of dry processing production to resume towards the end of CY19 and the remaining 30 MnT, which includes wet processing, is estimated to return in about two to three years.

Vale will take the appropriate measures in this case and reaffirms its 2019 iron ore and pellets sales guidance of 307-332 MnT.

Spot iron ore prices increased sharply-: Chinese spot iron ore prices (Fe 62% fines) increased yesterday (i.e 12th Sept'19) to USD 98.85/MT, CFR China. The prices were up as against USD 90/MT, CFR China a week ago. Spot Index increased by USD 9/MT on weekly basis.