company news about Heavy rain in Brazil affects major iron ore producing areas

Yesterday, the two major mines in Brazil issued announcements saying that the heavy rains in recent days have caused the suspension of services in some railway sections and production in all operating areas.

Among them, Brazil's largest mine, Vale, announced that due to heavy rainfall in Minas Gerais, the company has partially suspended the service of the Victoria to Minas Railway (EFVM) and the production of the southeast system and the southern system. Keep employees and communities safe.

In the southeastern system, the suspension of service on the EFVM railway section from Rio Piracicaba to Jo o Monlevade has restricted outbound shipments from the Brucutu and Mariana complexes, causing them to suspend production. The section from Desembagador Drummond to Nova Era has also been suspended, but it is in the recovery phase and has not affected production in the Itabira complex.

In the southern system, due to the blockade of parts of the BR-040 and MG-030 highways, production has been suspended in all operating areas to ensure the safety of regular and third-party employees and mining infrastructure. Vale is taking all necessary measures to resume business activities.

The northern system has no impact and continues to operate according to the production plan.

Vale has reiterated that its 2022 iron ore production guidance remains at 320 million to 335 million tons, taking into account the possible seasonal impact of the rainy season on all operating areas.

In addition, Brazil's CSN Mining Company, the second largest mine, also issued an official notice that due to heavy rains, the mining and transportation operations of the Casade Pedra mining area were suspended, and its activities are expected to resume in the next few days. The company also informed that the operation of TECAR, the coal and ore berth in the port of Itaguaí, has also been suspended. The company will take all necessary steps to maintain operations, respect the necessary concerns to ensure the safety of employees and the community, and look forward to a gradual resumption of activities as weather conditions permit.

According to SMM, CSN's iron ore is mainly high-silicon and low-aluminum products, with an annual output of about 39.21 million tons. The daily chemical shipment volume of the CSN iron ore shipping berth is about 80,000 to 90,000 tons.

The torrential rain has affected the production of some mining areas, but the time is short, and under the current situation of high port inventories, it will not have an impact on the supply of iron ore.