SMM News: Anglo American is restarting operations in Brazil's Minas-Rio (Minas-Rio) iron ore. The mine was shut down earlier this year because of inspection and maintenance of pipelines connected to the port.
After the pipeline leak, the company said it would resume operation by the end of the year, so the resumption of work did not exceed market expectations. According to the Minas-Rio report, the potential loss from the shutdown is $320 million (profit before tax, interest, depreciation and amortization), compared with a previous estimate of between $300m and $400m.
Anglo American closed the pipeline in March this year because of two leaks. The resumption of work is good news for the company, as the mine mainly produces high-grade iron ore and soaring prices as a result of the pipeline incident.
According to SMM research, Minas Rio is mainly pelletizing fine powder, with a production capacity of 3.16 million tons in 2018 and an estimated output of 1600-19 million tons in 2019; the final output of the project can reach 26.5 million tons, which is expected to be realized after 2021.
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