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Highlights
- Some mining giants have paused their mining production amid heavy rainfall in Southeastern Brazil.
- The heavy rain has caused floods in the Northeast and has also resulted in the harvest delay in Midwest.
Some mining giants have paused their mining production amid heavy rainfall in Southeastern Brazil. The heavy rain has caused floods in the Northeast and has also resulted in the harvest delay in Midwest. Rainfall is forecasted to remain heavy this week.
Regions affected by rainfall
Minas Gerais, the top mining state, is going through heavy rains, causing deadly floods, with railways and roads blocked. Over the weekend, the canyon rock face collapsed, leading to the death of 10 people visiting the waterfall. Rainfall is forecasted to remain heavy this week.
The Northeastern state of Bahia reported displacement of over 50,000 families and death of approximately two dozen during the holidays.
Companies suffering due to heavy rainfall
- Vale SA is the second-largest producer of Iron ore, and the company reported that it has partially suspended its operations at its Southern and Southeastern iron ore system due to heavy rain.
- Companhia Siderurgica Nacional (CSN) and Usiminas are Brazilian steelmakers and have announced operations halt.
- A joint venture between BHP and Vale, Samarco also reported that its Germano complex is presently operating at 50% capacity because of bad weather.
- Since the dike is overflowing after heavy rainfall over the weekend, France’s Vallourec also paused its operations at Pau Branco mine.
Bottom Line
The iron-ore producers are significantly affected by the heavy rain in Brazil, which is predicted to continue this week. Companies have updated the shareholders that yearly targets will be met despite the heavy rain. Let’s see how the year goes for the mining giants.