The failure of a tailing dam in Vale's C??rrego do Feij??o mine in Brazil's southeastern Minas Gerais state could hamper the mining licensing process and is already affecting iron ore prices, analysts said.
Iron ore spot prices and futures have come under pressure following the accident.Fastmarkets' MB 62% Fe iron ore index went up by $3.49 per tonne to $78.18 per tonne cfr Qingdao on Monday, up day on day."This is clearly pricing in the volume disruption to Vale, which we think is valid given the pressure to re-certify all tailings dams under their control, particularly the 17 upstream method dams at their operations," BMO Global Commodities Research analyst Colin Hamilton.One alternative is for Vale to continue moving toward dry processing, Hamilton added. The report also mentions the possibility of mining licenses becoming more difficult to obtain in...