Brazilian miner Vale is expected to compensate for most of the loss in output caused by the decommissioning of tailings dams by ramping-up other operations, analysts told Fastmarkets on Wednesday January 30.
The company announced a potential 10% cut in its production guidance while decommissioning goes on. Vale intends to produce 400 million tonnes per year of iron ore from 2019 onward, but ending the use of these dams could reduce volumes by as much as 40 million tpy."The effects of this cut will be partially compensated by increasing production in the company's other systems," the miner said. All the operations that will be temporarily halted are part of its Southern system in Brazil.The company's management believed that most of the production losses will be mitigated, analysts Leonardo Correa and Gerard Roure wrote in a report for Brazilian bank BTG Pactual...