Climate change interupting Brazil mine operations
Iron ore price rises as heavy rains force miners to halt operations in Brazil
Example of vulnerability of transportation systems supporting mine production. Similar threat to all mine operations in lower latitudes..
“The iron ore price jumped on Wednesday as heavy rains disrupted southeastern Brazil’s iron ore industry, with Vale among the companies halting operations and regulators sent to monitor the impact on tailings dams.
The world’s no. 2 producer has partially suspended services on the Estrada de Ferro Vitoria a Minas Gerais railway as well as production at its southeastern and southern systems “to guarantee the safety of its employees and communities,” it said in a statement Monday.
“The production shut-ins and heightened safety risks are modestly credit negative for Vale, CSN and Usiminas, but prolonged flooding that disrupts mining and logistics operations for an extended period would likely reduce their production volumes and therefore hurt cash flow and revenue more significantly,” Moody’s said in a note.”
https://www.mining.com/iron-ore-price-rises-as-heavy-rains-force-miners-to-halt-operations-in-brazil/
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