Brazil's Vale halts iron ore operations due to heavy rains, maintains guidance

Reuters2022-01-10

SAO PAULO, Jan 10 (Reuters) - Brazilian miner Vale said on Monday it has partially halted operations at its Southeastern and South iron ore systems due to heavy rains that are affecting the state of Minas Gerais, but reiterated 2022 production guidance as the Northern system was not affected.

Vale said in a securities filing that train circulation at its Vitoria-Minas railway was partially interrupted following the rains, which led output to be halted at the Brucutu mine and the Mariana complex as it was unable to transport iron ore from these ventures.

Both are located at Vale's Southeastern system - as well as the Itabira complex, which was not affected.

At the Southern system, Vale said all of its complexes had to halt production as key highways BR-040 and MG-030 were interdicted.

Despite the haltings, Vale added that the Northern System is still operating as planned, and it reiterated its 2022 iron ore production guidance at 320-335 million tonnes.

"Vale is taking all measures needed to resume activities and keeping its focus on the safety of employees and communities," the company said. It did not provide a detailed timeframe for operations to be resumed.

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