Been meaning to post this but covid and a few other things have got in the way.
I’ve spoken at length how difficult it is for Vale to ramp up production in the past, The Vale Benny Hill show just keeps rolling along, Still it’s been awhile since a poor contractor has tumbled down a muddy hill into a giant hole and died, or a conveyor belt has caught fire, or a Vale Max collided with another ship at port, these are side shows compared with its struggle to increase supply since the Brumadinho disaster in 19.
The political good will for Vale is shot and Jair Bolsonaro can’t influence the local governments to do the typical Brazilian thing and simply accept a bribe to look the other way, like the past much to Xi Jinpings disgust. Significant new supply is a loooooong way away.
Not VALE, RIO, BHP or FMG will be doing anything that will move the dial for a long time. If and when Sindamou gets up it will be circa 7-10 yrs before they can cut through that corruption and the Guinea mountains and the tropical jungle and finally build that railroad to make it competitive. Meaningful Supply isn’t going to increase for years, if at all.
Vale says stricter licensing requirements cause project delays
https://www.mining.com/web/vale-says-stricter-licensing-requirements-cause-project-delays/
Reuters | July 29, 2022 | 2:14 pm
Top Companies Latin America Iron Ore S11D mine, part of the Serra Sul complex. (Image: José Rodrigo Zermiani | Agência Vale) Vale SA said on Friday it is running into delays as it seeks environmental licenses for new projects due to “more sophisticated” requirements.Vale cited slower regulatory approvals in reducing its 2022 iron ore production outlook to 310 million to 320 million tonnes from 320 million to 335 million tonnes.
Environmental licensing processes in Brazil and actually all over the world are getting more sophisticated,” said Vale’s head of ferrous metals, Marcello Spinelli, in an earnings call with analysts.Stricter regulations followed the collapse of a Vale-owned tailings dam in Brumadinho in 2019 that left 270 dead and ravaged nearby forests, rivers and communities.Vale has been struggling to increase production, and analysts at Santander labeled the company’s quarterly figures as lackluster due to weak output comparisons.He added that stricter standards were also being seen in the Amazon, where the company’s largest mining complex, Carajas, is located.Spinelli celebrated Vale’s license to build the Serra Sul 120 project, which will allow it to ramp up production by 20 million tonnes per year at its S11D complex in the Amazon state of Para.The executive also said its 10 million-tonne-per-year Gelado project would get the green light to begin production in the fourth quarter.“The overall tone was positive, 2Q was likely the low of the year for Vale and there is a lot coming on the operating side,” JPMorgan said, foreseeing “good news” on licensing in September.Vale shares fell by as much as 3.4% but pared some losses and closed down 1.3%. Brazil’s Bovespa stock index rose 0.55%.(By Roberto Samora and **riel Araujo
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