Vale warns about possible dam collapse risk
According to Reuters, on May 16, Vale (VALE) customs prosecutors that were at risk of rupturing at its Gongo Soco mine. This is ~ 40 miles from Vale's Brumadinho dam, which collapsed on January 25, killing more than 230 people.
Prosecutors said that as of Vale's prediction, the dam in the city could collapse next week if the current rate of movement in
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Supply disruptions at BHP and Vale
BHP Billiton (BHP) is expecting a reduction of 6 million to 8 million tons of iron ears. Its port and rail operations are running at reduced rates due to flooding, affecting its shipments. The likely impact on Rio Tinto's (RIO) production is even higher. Due to the combined impact of Cyclone Veronica and a fire at one of its ports in January, Rio is expecting an output cut of 14 million tons in 2019.
Due to the expected decline in iron ore supplies, iron ore prices have been gaining in 2019. After the Vale's recent warning about its dam, iron ore surged to a five-year high or over $ 100 per tonne.