The iron ore market shrinks by another 10 million tonnes. Brazilian Vale has been forced to close another iron ore mine in the state of Minas Gerais, which may mean that the iron ore market in the world is falling by up to 10 million tonnes.
The company has had two catastrophic tailings dam failures in Brazil: Mariana, in 2015, and Brumadinho, in 2019; the Brumadinho dam disaster caused the company to lose its license to operate eight tailings dams in Minas Gerais, and its stock to lose nearly 25 per cent in value.
The closure of the Alegria mine is a preventive measure, according to the world's largest iron ore producer, as the mine's structures did not pass a stress test that was carried out to ensure its stability. What Vale refers to with "structures" is unclear because there is no upstream pond in Alegria similar to that in Corrego do Feijão, which collapsed.
Last week, Vale was forced to close the Timbopeba mine, including the state of Minas Gerais State, which produces 12.8 million tonnes of iron ore a year due to security issues.
Source: mining.com
