Brazil's Vale (Vale SA) Will Restart The Operation Of The Alegria Mine
According to reports, the Brazilian miner Vale SA recently stated that it has been authorized by the Brazilian regulator ANM to resume its Alegria mine operation. In March last year, after a “stress test” failed to guarantee its stability, the mine production was interrupted.
The company said in a securities filing that the restoration of the Alegria mine operation will allow the iron ore exporter to recover 8 million tons of capacity. In January of this year, the company's Brumadinho tailings mine collapsed, causing a series of factories to stop production.
Prior to the closure, the Alegria mine had an annual capacity of 10 million tons.
The mine's resumption of operations will increase production by 1 million tons in 2019, but should not affect sales this year. The company still expects sales this year to be between the previously announced low-end between 307 million and 332 million tons.
Vale's share price rose 2.7% on Friday, BTGPactualanalyst analyst Leonardo Correa said the company reduced "another risk event" and reiterated his "buy" rating.
In addition, the Brazilian Ministry of Trade said on Friday that the country's iron ore exports in October fell 16% year-on-year to 31.2 million tons, but up 15% from September.
Iron ore prices have also fallen, from $68 per tonne last month to $62.9, although still significantly higher than the $55.7 per tonne in the same period last year.