Brazil's Vale will soon return 30 million tonnes of iron ore to the dry bulk market, signaling good news for bulkers, according to analysts.
The major producer of the commodity on Wednesday received approval from the federal Superior Court of Justice to reopen the mine following its latest closure in early May.
"The above-mentioned decision will enable the full resumption of wet processing operations at Brucutu within 72 hours, thus increasing the average quality of Vale's product portfolio," the company said.
Vale in February closed 50 tailing dams after its Brumadinho dam at the Feijao iron-ore mine collapsed 25 January, killing more than 300 workers.
The company's overall iron-ore output fell by 93 million annual tonnes as a result of the closures.
The Brucutu mine was reopened by a lower court decision in early April but then closed again about a month later.
Vale reiterated its earlier 2019 iron-ore sales guidance of 307 million to 322 million tonnes but said its current sales volume will move toward the range's midpoint.
'Certainly positive'
"Even though spot activity out of Brazil has picked up somewhat over the past few weeks, the resumption of operations at Brucutu would certainly be positive for the dry bulk market," Arctic Securities analyst Jo Ringheim wrote today in a note to clients.
Meanwhile, Brazilian competitor Rio Tinto has lowered its 2019 shipment guidance to between 320 tonnes and 330 tonnes from between 333 tonnes and 343 tonnes due to mine operational challenges, he said.
