Vale's Brucutu iron mine is once again a target for Brazilian prosecutors

SMM3 22-according to Bloomberg, Brazilian prosecutors asked Brazil's Vale do Rio Doce company (Vale SA) Brucutu large iron mine to add additional security measures.

A very serious dam break occurred at Vale's mine in January this year. The mine has been closed since the beginning of last month, and Brazilian prosecutors' demands could stalemate the resumption of iron ore production.

Minas Gerais state prosecutors asked Vale, the world's largest iron ore producer, to hire an independent audit firm to review Brucutu's PDE 3 and Barragem Sul dams.

The Brucutu iron mine is one of Vale's largest mines in the state. Earlier this week, the company made progress in restarting the mine.

Prosecutors also asked Vale to conduct new geological studies and submit new proposals to ensure the stability of the dam. And design a safety plan to ensure that once there is a hidden danger of safety, it will stop all business activities that may increase the risk of dam break.

The prosecution's request highlights the complexity of the accident, and there is also a dispute within the prosecution over how to properly resolve the January 25 dam break. More than 300 people were killed or missing as a result of the dam break.

Iron ore is one of Brazil's largest exports. The iron ore industry is a major employer and can effectively boost the economy.

Earlier this week, the, Minas Gerais state court issued a ruling allowing Vale to resume operations at Brucutu on the grounds that employment and economic activity in the state had been affected by the Brucutu shutdown.

And prosecutors say the dam at the Brucutu mine is safer than the one that occurred in January.

But prosecutors have also asked Vale to take more security measures. Because Vale did not find cracks in two dams after 2015, causing the dam to break.

After the dam break, Vale has stopped producing more than 90 million tons of iron ore.

This has rocked the global steel raw material market. Citibank said iron ore prices in Singapore would rise from $81.2 to $100 in the middle of the year because supply problems would be difficult to ease in the short term.