Correction to my last post. The effect of Vale halting operations at Ferrous Resources in Minas Gerais should be annualised at 4mt py- not 2mt py as previously stated. Despite this larger impact, it should be noted that Vale has characterised the cessation as "temporary" in nature.

Also, according to this article, which looks to be well informed, Vale's current annual production loss, post Brumadinho, now stands at 42mt per year, not 60mt, as I stated earlier. This makes sense as they have stated they will par it back to a 30mt annual reduction by the end of CY19. Unfortunately, this glitch at Jeceaba, which is only 100ks from Brumadinho, will not help progress. Also, will the authorities in Jeceaba be somewhat reticent to approve the paper work, given Vale's recent history in the state?

Vale must have really been in a hurry to aquire new production to make such a basic mistake as not checking the company's paperwork was in order.

Vale halts operations at one Ferrous Resources mine; output cut by 4mln tpy

Brazilian miner Vale has decided to temporarily halt part of the operations of subsidiary Ferrous Resources due to the absence of licensing documents.

This will reduce its output of iron ore by around 330,000 tonnes per month, the company said late on Thursday August 15. The annualized effect of the stoppage has been calculated as being equivalent to 3.96 million tonnes per year. The South American country’s antitrust regulation council, Cade, approved the acquisition of Ferrous Resources from Icahn Enterprises in July this year. Vale paid $550 million for the operation. Vale has since learnt that the company did not have the full set of documents required to get a municipal permit from the city of Jeceaba, in the southeastern state of Minas Gerais. The operation of a concentration plant will be halted until this is resolved.

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