Samarco’s Iron Ore Comeback Reshapes Brazil’s Mining Trade

Samarco, a major Brazilian iron ore producer co-owned by Vale and BHP, has made a significant comeback. After the company’s tailings dam collapsed in 2015, killing 19 people and polluting hundreds of kilometers of river, Samarco faced serious consequences.

The government ordered the company to shut down operations for five years. In December 2020, it began to cautiously restart its mining operations, investing heavily in safety equipment and filtration systems under strict government monitoring.

New company reports show that, between April and June 2025, Samarco produced and sold 3.9 million tonnes of iron ore pellets and fines—up 91% from last year.

This equals pre-disaster levels, marking its most productive quarter since the restart. Samarco aims to reach its old capacity of 26–27 million tonnes by 2028, spending over $2.8 billion on safety and process upgrades.

Despite selling more products, Samarco earned less per tonne. Its pellets averaged about $129 per tonne, a 17% drop from last year, because global iron ore prices have fallen due to shaky demand, especially from China, and more supply worldwide.

Still, Samarco’s increased shipments boost Brazil’s position as a top iron ore exporter. If Samarco hits its targets, it could provide up to 8% of Brazil’s total iron ore exports.

This turnaround did not happen by chance. Strict oversight, new technology, and steady investment have helped Samarco reduce risks and rebuild trust after the disaster.

The company’s path shows that resource businesses can come back—but only when they meet tougher safety and environmental standards.

For steel buyers and major economies, Samarco’s recovery means a more reliable supply of key materials, but also a lesson in the true cost of risk in modern mining.

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