The cut in output forced Vale to declare force majeure in iron ore and pellets contracts on Tuesday.
Brazil Mining News
Vale has come under intense public pressure since the Jan. 25 dam burst, with some politicians and prosecutors calling for criminal prosecution and a management shakeup.
The problem for miners is convincing an increasingly sceptical public of how necessary their industry is.
Iron ore prices have surged since the disaster, hitting a nearly two-year high on Monday.
Vale SA said it’s temporarily halting some operations at its Brucutu mine, potentially causing a production loss of about 30 million metric tons of iron ore a year
The report by German-based TÜV SÜD made 17 recommendations aimed at improving the stability of the structure and was dated September 2018.
The Planalto project is located in the northern Carajás province.
A video shows the exact moment when a dam at Vale’s Córrego do Feijão mining complex burst.
Brucutu, which has an annual capacity of 30 million tonnes of iron ore, is Brazil's second largest mine, behind Vale’s Carajás.
The rescue and recovery team said that 248 people were now listed as missing.
Those inclined to make a bullish bet on disaster may be in for a dose of karma. This rally is more likely to collapse than extend.
We need to closely watch Vale's overall output and how it will impact on iron ore markets going forward.
The disaster was also a cautionary tale about how government overreach and flawed corporate governance can contaminate policy.
"Vale is an important strategic partner"
The argument is being harshly criticized by experts and locals, who believe the law-enforced audible could have saved lives.
The financial penalties related to the dam collapse may prove even larger than those for Samarco.
The loss of about 40 million tonnes of annual supply is expected to boost demand for Australian ore.
Funds expected to be used as compensation for the victims of last week’s tailing burst, which killed at least 99 people.
CSN is aiming to reduce debts that piled up after an iron ore and steel price rout in 2015-2016 and a severe recession in Brazil, prompting investors to demand asset sales.
Vale said it plans to release its fourth quarter earnings report on March 27 rather than Feb. 13 as originally planned.
Vale production cuts could have "outsized" impact in shorter term with spot prices predicted to return to $100-plus per tonne in summer.
Brazilian authorities and companies involved with river water management are trying to stop the torrent of mining waste from reaching the Sao Francisco river, a source of drinking water for communities in five of the country's 26 states.
48 people have been identified so far, as work continues in the area.
Chief Executive Fabio Schvartsman said Vale would halt operations using those dams and spend 5 billion reais ($1.3 billion) to decommission them.
Bolsonaro and his cabinet are swiftly dialing back promises of deregulation.