Vale has gradually resumed its operations in the Brazilian state of Minas Gerais after safe conditions were re-established following a period of heavy rains that affected the region. In the Southeastern System, the trains on the Estrada de Ferro Vitória a Minas railway have resumed on the Rio Piracicaba-João Monlevade stretch, allowing exports from the Brucutu and Mariana mines to resume. The BH branch line, which is responsible for general cargo transportation, is halted, and logistic alternatives are being evaluated for the definitive resumption of the branch line and for the expedition of general cargo while the branch line remains halted.

In the Southern System, some roadways were cleared, and other alternative access points were established, providing access for miners and suppliers. Several stretches of the MRS Logística had railway cleared and other stretches were expected to be cleared this week.

Accordingly, the Abóboras, Vargem Grande, Fábrica and Viga plants, representing about one-half of Vale’s current iron ore capacity from the Southern System, has gradually resumed operations. The other plants should begin producing again in the coming days, after additional work to re-establish the appropriate operating conditions and normalization of train transit has been completed.

The continuous monitoring of its dams and geotechnical structures indicated changing conditions for two structures. The Area IX dam was elevated to emergency protocol level 2 from level 1, based on piezometric reading from the right abutment of the structure. Emergency protocol level 1 was initiated for the Elefante dike after erosion was discovered on the right abutment of the structure, without compromising its overall stability. The company has already initiated studies and corrective actions in both cases. There is no permanent occupation of people in the corresponding Self-Rescue Zones and no additional evacuation is required.

Due to the stoppages in Minas Gerais, Vale estimates an impact of approximately 1.5 million metric tons (mt) of iron ore production. The company adjusts for the seasonal impact of the rainy season in all operations, and reiterates its iron ore production guidance of 320 million to 335 million mt for 2022.