The move is aimed at providing a tool for institutional investors to assess the risk from their holdings in mining companies.
Brumadinho Mining News
The decision comes on the same day a Brazilian court froze an additional 1 billion reais ($255 million) in assets as possible compensation for damages related to a recent evacuation of the area around the company's Vargem Grande dam in Minas Gerais state.
Currently there are no set of universal rules defining exactly what a tailings dam is, how to build one and how to care for it after it is decommissioned.
The world’s biggest iron ore producer said the injunction will impact production at its massive Brucutu mine, as it will now take longer than expected to bring it back on line.
The preventive measure was taken after a stress test failed to guarantee stability of the mine’s structures. Vale noted it would restart production when new studies are completed and their results are conclusive.
The world’s iron ore producer has faced continued backlash from Brazilian authorities since the deadly mining dam accident that killed around 300 people in January.
The International Council on Mining and Metals (ICMM), a London-based industry group representing 27 companies, is setting an independent panel of experts to develope a global standard for tailings facilities to be enforced to its members.
The decision was made in light of a possible failure of five dams at both complexes, which are located in Minas Gerais, the same state where the Feijão mine dam collapsed last month.
The final effect on seaborne volumes is yet to be seen, but it is likely that an expected increase in exports from Brazil for 2019 will instead be a small contraction.
All so-called upstream dams need to be decommissioned or removed by August, 2021, according to a resolution the National Mining Agency published on Monday.
The disaster has called into question the willingness of investors and lenders to continue funding the broader industry.
Four people from the German consulting group Tüv Süd, company that certified the safety of Vale’s dams, were also detained.
Our current prediction is for 19 very serious failures between 2018 and 2027.
State-development bank BNDES intends to sell shares in the miner, but has yet to find a good moment to do so.
"The Brumadinho disaster shows that favoring profit over safety has been Vale's standard operating procedure."
We used to say these kinds of mining incidents were acts of God, but now ... we consider them failures in engineering.
This week’s drama has played out as the most important iron ore user has been offline, with Chinese markets closed for Lunar New Year.
About 700 people were evacuated from two towns located near tailings dams operated by Vale and ArcelorMittal on mounting fears after last month's breach at Brumadinho, the country's deadliest mine disaster.
The National Mining Agency aims to issue an ordinance on Friday requiring that upstream tailings dams be taken down or converted into other types of dams.
Vale SA was made aware of problems with sensors designed to monitor the structure of a dam that ended up bursting, 2 days before the disaster.
Creditors rejected Samarco’s offer to treat the injections as senior or pari-passu debt.
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