Brazil's top three suspended iron ore mines

Following the end of the commodities super-cycle, when iron ore prices slumped from US$180/t to around US$35/t in less than 24 months, and thanks to operating accidents that claimed over 20 lives, some important iron ore operations halted output in Brazil, which is the world's second-largest source of the key steelmaking ingredient sent to China.

BNamericas takes a look at three of these operations.

SAMARCO'S GERMANO MINE

Part of pellet-maker Samarco, a 50:50 JV between major iron ore miners Vale and BHP, the Germano deposit itself is almost depleted, but the plant receives most of its ore from the Alegria mine further north. Both mines are located in Minas Gerais state.

However, Germano was closed following a deadly tailings dam collapse (pictured) in November 2015. The collapse of the Fundão tailings dam at Germano killed 19 people, including 13 mineworkers, causing widespread environmental damage. One person is still missing, presumed dead.

Since then, the embattled company has faced lawsuits, including homicide charges, and had its environmental licenses suspended. The company is today battling to resume operations amid fears it will run out of cash.

On April 27, Vale said staff from the three companies were "working very hard" to bring Samarco back online.

Apart from a water supply issue, the pellet-maker still needs two further licenses to resume operations. If they are awarded, the company would be allowed to operate at a reduced capacity for two to three years and use an old pit to store tailings.

Samarco is looking at a longer-term storage solution for the tailings involving two other pits, Vale said.

Samarco has the capacity to process and pump a total of 24Mt/y of ore concentrate, with output and shipments reaching about 21.6Mt of pellets before its suspension.

MMX'S CORUMBÁ MINE

Corumbá is an open-pit mine in Mato Grosso do Sul state in Brazil's mid-west. It is 100% owned by MMX, the mining arm of the debt-laden EBX group. 

Output from Corumbá was suspended in 3Q14, initially for an expected six months. However, MMX's board decided to request bankruptcy protection on November 25, 2016, with Corumbá's production yet to restart. 

On March 24, MMX said in its bankruptcy plan that fellow miner Vetorial Mineração made a 14.5mn-real (US$4.44mn) bid for Corumbá, but Corumbá must pay 76% of its own debt and put the remainder in a debt repayment program.

Corumbá has capacity to process up to 2Mt/y of iron ore and sinter feed, MMX said.

ZAMIN FERROUS' AMAPÁ MINE

The Amapá iron ore system is in northern Brazil's Amapá state, from which it derives its name. The mine is owned and operated by Zamin Ferrous. 

Amapá consists of the mine in Pedra Branca do Amapari and the port in Santana, which are linked by a railway. The mine has not resumed commercial production since it was suspended in mid-2013 following a port incident where an iron ore floating dock collapsed, ultimately killing six workers. 

Prior to production being suspended, Amapá was producing a mix of sinter feed, pellet feed and spiral concentrates.

Zamin had previously stated that the port would be rebuilt and full export capacity restored by 2014, but this is unlikely to occur anytime soon, given the ongoing financial issues with the company. 

Mining at Amapá was suspended and all of its staff were dismissed in February 2015 when Zamin filed for bankruptcy in Brazil.