Chinese Steel Mills Get a Boost After G20; Samarco Disaster Explained

by Jeff Yoders on AUGUST 31, 2016

The terrible Samarco mining disaster was caused, according to owners BHP Billiton and Vale SA, by design flaws in the dam that burst and Chinese steel mills may have more customer demand after the G20 summit ends.

Samarco Disaster Caused by Design Flaws

The deadly collapse of a tailings dam last November at the Samarco mine, owned by Vale SA and BHP Billiton, was caused by drainage and design flaws, a report into Brazil’s worst-ever environmental disaster showed on Monday.

The 76-page report commissioned by the companies responsible for the spill, which killed 19 people, attributed the dam burst to a chain of events dating back to 2009, but did not assign blame or highlight specific errors in corporate or regulatory practice.

Chinese Steel Mills Could Get Unexpected G20 Boost

When Beijing ordered hundreds of industrial plants to close ahead of China’s first-ever G20 summit next week, the government wanted to spruce up the host city of Hangzhou and ensure world leaders would gather under clear blue skies.

In doing so, China’s leaders may have given the nation’s stricken steel mills an inadvertent leg-up, helping to restore profitability after a years-long downturn caused by weak prices as a global glut swelled and local demand slowed. Some Chinese steel plants are turning in the best margins in at least three years.

Source: MetalMiner