Vale redirects vessels from the Southwest of Brazil to São Luiz, while more mining activities are suspended

A Brazilian court has ordered Vale to suspend operations at Timbopeba mine following a legal case filed by the Public Prosecution Office in Minas Gerais. Use of Doutor dam and other structures at the mine are prohibited which is likely to impact 12.8m tons of iron ore per year. Last week the Mangaratiba City Government in Rio de Janeiro also ordered the temporary shutdown of Vale’s Guaíba Island Terminal

Many bulk vessels are currently waiting in São Marcos Bay to call at the terminals of São Luiz, not just because of seasonal grain loading according to Vale, but also because Vale has been redirecting vessels from the South East of Brazil. The map below from Datamar’s AIS web service shows vessels in the bay as of Monday 18^th March:

According to Vale, the increase in vessels in São Luiz is due to the closure of the Terminal de Ilha Guaíba in Rio de Janeiro, and the reduction in production of mines in the Southeast. Following Vale’s decision to dismantle 10 dams after the deadly tailing dam collapse at Brumadinho, and the increased scrutiny of other mines by authorities, the company’s iron ore output is likely to decrease by tens of millions of tons per year.

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