Ann: Company Update, page-65

omberg) — Brazil is prohibiting a specific type of tailings dam after two of those structures run by miner Vale SA burst in recent years, causing death and environmental devastation.

All so-called upstream dams need to be decommissioned or removed by August, 2021, according to a resolution the National Mining Agency published on Monday in Brazil’s official gazette.

Dam owners have until Aug. 15 to complete a technical plan for the dams, which at a minimum includes reinforcing existing structures or building a new retention structure.

In the most recent accident, a dam at Vale’s Feijao mine burst on Jan. 25, unleashing a torrent of mining waste that killed at least 169 people and contaminated rivers. Vale has said it will spend 5 billion reais ($1.4 billion) to decommission its 10 upstream dams in the next three years.

The upstream method is typically the cheapest way for miners to contain ponds of tailings waste that result from extracting iron ore. A costlier method pre-builds the walls and insulates them.

Iron ore prices have surged 21 percent this year on supply curbs stemming from Vale’s dam burst. Vale has shut in about 70 million tons of supply since the accident, although it says some of that can be offset by lifting production elsewhere.