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Reuters reported that the Brazil-based Samarco iron ore mine, whose tailings dam burst last year, killing 19 people, will restart production by the start of Q4 2016. Samarco is a joint venture between Vale SA (NYSE:VALE) and BHP Billiton (ASX:BHP,LSE:BLT,NYSE:BHP).
Reuters reported that the Brazil-based Samarco iron ore mine, whose tailings dam burst last year, killing 19 people, will restart production by the start of Q4 2016. Samarco is a joint venture between Vale SA (NYSE:VALE) and BHP Billiton (ASX:BHP,LSE:BLT,NYSE:BHP).
As quoted in the market news:
CEO Roberto Carvalho said iron ore pellet production for the initial two to three years would likely be at a reduced 19 million tonnes per year as the company develops a long-term plan to store the mining waste known as tailings.
Before the dam disaster, Samarco was producing about 30 million tonnes per year.
“All our focus is turning to the restart,” Carvalho said at the company’s headquarters in Belo Horizonte, the capital of Brazil’s mining heartland. “We have talked to our clients, they have given us all the help possible and are awaiting the return of Samarco.”
Samarco is an influential miner in the pellet market. Before the dam spill in November, it accounted for about 20 percent of the global market for this high-grade steelmaking raw material that attracts a premium from mills.
Though the restart depends on authorization from Minas Gerais state environmental body and mining regulator DNPM, Carvalho said the settlement with the government of a 20 billion-real ($5.53 billion) lawsuit for damages caused by the spill has provided positive momentum.