By Contributing Reporter
RIO DE JANEIRO, BRAZIL – Brazilian miner Vale on Thursday estimated selling up to 75 million tonnes less iron ore and pellets this year after several mines were halted following its second deadly dam burst in less than four years.
The estimate, which is 20 percent below its prior forecast, is the latest blow to Vale from the dam collapse at Brumadinho, which killed some 300 people and forced the world’s largest iron ore exporter to fire its chief executive officer earlier this month.
The Federation of Industries of the State of Minas Gerais (FIEMG) has produced a report on the partial stoppage of mining in the State during the “International Technical Seminar on Tailing Dams and the Future of Mining in Minas Gerais”, which took place last week.
According to the report displayed by the institution, the impact of the stoppage of ore production could reach 90 million tonnes annually in 2020 and 65 million tonnes in 2021, which would result in a net sales decrease of approximately R$24.9 billion.
Flávio Roscoe, FIEMG Chairman, classifies the industry as vital for the State and argues that operations should be maintained only when safety is guaranteed.
“Whenever risk exists, we will support the stoppage of mining activity. Where it does not, we will not stop, or we would be killing the mining industry and not generating income for the people,” Roscoe stated.
FIEMG also produced an investment plan for the federal government, as strategy possibilities for a “crisis exit.”
The idea is based on structuring projects using a smaller volume of resources and with a higher possible economic and social impact, investing in infrastructure, energy, housing, basic sanitation and health.
The total proposed investment would be R$44 billion, of which R$24 billion would come from private funds. According to Roscoe, the industry needs to develop other products resulting from mining so that more wealth is generated.