Iron ore majors ramp up supply even as China faces challenges
Iron ore is one of the year’s worst performing major commodities, slumping by almost a quarter as China’s property crisis drags on.
Brazilian environmental regulators ordered miner Anglo American Plc (LON:AAL) to halt operations in the country following a pipeline leak.
Anglo American had previously suspended mining operations in its Minas-Rio system in Brazil, which transports iron ore from the company’s mine and processing facility in the state of Minas Gerais to a port in the state of Rio de Janeiro, between March 12 and March 27 following a previous leak.
“The event led the company to paralyze the process of resuming iron ore transportation,” Anglo American said in a statement. “The company will also put employees on paid leave.”
The pipeline carries a mixture of iron ore concentrate and water. The statement did not give any further information on the accident nor say when operations were expected to resume.
A document by Brazilian environmental watchdog Ibama seen by Reuters said Anglo American would only be allowed to resume operations once it demonstrates the pipeline’s security.
Reporting by Marta Nogueira; Writing by Bruno Federowski; Editing by Bill Trott and Jonathan Oatis.
