Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
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.
