I guess that makes a total of 90MT shortfall this year.From RIO...

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dirkjeremy

505 Posts.

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01/04/19

10:15

Post #: 37947266
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Originally posted by dirkjeremy: ↑

Vale just lost many tens of millions of tonnes of production much of which may never be replaced.

Still many question marks about similar dams operated by Vale and indeed other Brazilian iron ore miners. There may be further unanticipated supply shocks further down the track.

Vale investing in SDL makes sense if it seeks a viable replacement for all those millions of lost tonnage. The high grade requirement typical of Vale can also be satisfied which can't be said of low grade deposits elsewhere in the world.

I imagine (because of continental drift over eons) the geology of Brazil and West Africa would be similar so the Brazilians know how to mine and process the ores. Most importantly, a company like Vale has both the expertise and financial strength to deliver.

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I guess that makes a total of 90MT shortfall this year.

From RIO announcement today ... another 14MT off this years iron ore production

....The impact of the disruption to production caused by the cyclone and repairing the damage sustained at the port facilities, combined with the damage caused by the fire at Cape Lambert A in January, will result in a loss of approximately 14 million tonnes of production in 2019. As a result Rio Tinto’s Pilbara shipments in 2019 are expected to be at the lower end of the 338 and 350 million tonne...

SDL Price at posting: 0.6¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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