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Vale to resume operations at Alegria mine - filing

1st November 2019

By: Reuters

  

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SAO PAULO – Brazilian miner Vale said on Friday it had been authorised by local regulator ANM to resume operations at its Alegria mining site, which were interrupted last March after a "stress test" failed to guarantee its stability.

In a securities filing, the company added the resumption of mining activities at Alegria will allow the iron-ore exporter to restore eight-million tonnes of 50 million in capacity lost after the deadly Brumadinho dam collapse caused a series of shutdowns.

Before the shutdown, Algeria had an annual capacity of ten-million tonnes.

The mine's resumption will add up to 1 million tonnes to production volumes in 2019, but should not impact sales this year, which the company still expects to come in between the lower and midpoint of its previously announced range of 307-million to 332-million tonnes.

Vale shares were up 2.7% in late morning trading as BTG Pactual analyst Leonardo Correa called the resumption "yet another de-risking event" for the company, reiterating his "buy" rating.

Edited by Reuters

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