Brazil's Vale Sees Samarco Mine Reopening in 2020 After 2015 Dam Tragedy
October 25 2018 - 10:42AM
Dow Jones News
By Jeffrey T. Lewis
SÃO PAULO--Iron ore giant Vale SA expects mining operations at
the Samarco Mineracao SA mine, site of a tailings-dam collapse in
2015 that killed 19 people, to resume in 2020, chief executive
officer Fabio Schwartzmann said Thursday.
Vale, the world's biggest iron-ore producer, owns half of the
Samarco operation, and BHP Billiton Ltd. owns the other half. The
mine, which has been shut since the disaster, was part of an
operation that produced high-quality iron ore pellets that are
cleaner to process, command a higher price and are increasingly in
demand in world markets.
The companies signed settlements to lawsuits earlier this year,
and Samarco has obtained a license to build another dam at the
site, both of which help clear the way to make progress in
restarting work at the mine, Mr. Schwartzmann said in a conference
call with analysts.
Samarco will soon be in a position to request a license to
resume operations, and if approved, production can start in 2020,
Mr. Schwartzmann said. "That's why we're more confident," he
said.
The collapse of the tailings dam, located in the town of Mariana
in the state of Minas Gerais, was one of the worst such accidents
in mining history. Apart from the deaths, the wave of water and mud
destroyed villages and polluted more than 400 miles of rivers
before spewing into the Atlantic Ocean.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
October 25, 2018 11:27 ET (15:27 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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