A Brazilian court has ordered mining giant Vale to suspend operations at its Timbopeba min, after a legal case was filed by the Public Prosecution Office of the State of Minas Gerais (MPEMG) against the company.
The company has also been banned from using the Doutor dam as well as operating other structures of the Timbopeba mine and it could be fined 500,000 reais ($131,000) per day if it disobeys the order.
Vale said the decision was based on a notification received by the MPEMG containing preliminary information on the Doutor dam. The suspension affects the operations of the Timbopeba mine with an impact of 12.8m tons of iron ore per year.
The court ruling comes after a deadly dam burst in January, which has seen authorities increase the scrutiny of Vale’s operations.
Another 12.8mt of #ironore output closed down w/immediate effect @ $VALE #Timbopeba mine in #Brazil, adding further woes to the #Capesize outlook by potentially removing another 0.1% of Capesize demand $BULK $GLBK $DSX $EGLE $GNK $GOGL $SALT $SB $SBLK $SHIP pic.twitter.com/k7CE1IKApl
— Joakim Hannisdahl (@JHannisdahl) March 16, 2019