Brazilian miners told to decommission hundreds of dams after deadly Vale tragedy
Brazil has banned all mine dams like the one which burst last month, killing over 300 people in the state of Minas Gerais.
The country’s mining regulator said it will force companies to decommission all upstream dams, which are used to gather waste from the mining process.
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The dams, of which there are 50 in the state alone, will be taken out of use by August 2021, the regulator said.
It announced the changes as the official death toll from the Brumadinho disaster ticked up to 169, with 141 people still missing and presumed dead since the end of January.
The news is likely to push up the cost of iron ore, said Marex Spectron head of research Georgi Slavov.
Prices have already risen by around a quarter since the disaster three weeks ago.
“This will cut supply and it will cut supply of very high quality iron ore,” he told City PM, “any further disruption cannot be price negative, it will be very price positive.”
Read more: Iron ore prices soar as Chinese investors fear Vale output cut
Brazil provides high-quality iron which is popular among Chinese steel mill owners as it creates less pollution.
However, decommissioning the dams could reduce the quality of the iron ore, as mines will be unable to use water to wash away impurities in the ore.