23rd Dec 2019 07:53
(Alliance News) - Blue-chip miner Anglo American PLC has received the next phase of the operating licence for tailings storage at the Minas-Rio iron ore operations in Brazil, it said Monday.
Tailings are the waste materials left over after commodities are separated from their various ores, and are often stored in dams.
Anglo American had been working to raise the dam, with construction completed in August. It now has the licence to operate the expanded facility.
No tailings were used to build the dam, Anglo Amerian noted, with construction materials used instead, a "conservative and high-quality" dam. It is also downstream, with Brazil having banned upstream dams after several fatal accidents.
Tailings dams came under the spotlight after more than 200 people were killed after a dam owned by Brazil's Vale SA collapsed near the city of Brumadinho in January this year. In 2015, the Fundao dam, owned by a BHP Group PLC joint venture, collapsed in the country, killing numerous people and causing widespread environmental damage.
"This is an important milestone for our Minas-Rio iron ore operation in Brazil towards reaching its full potential," said Seamus French, the head of Bulk Commodities at Anglo American.
"Minas-Rio has a long asset life of 48 years and produces a high grade, premium quality product for our customers, supporting lower emissions in the steel industry. We expect Minas-Rio to produce 23 million tonnes in 2019, with a free on board unit cost of USD24 per tonne.
Production from Minas-Rio was shut down for a significant portion of 2018 due to pipe leakages.
Shares in Johannesburg were 0.4% lower at ZAR397.15 on Monday.
By George Collard; [email protected]
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