Since the start of 2019, iron ore production in Brazil has suffered due to the Brumadinho tailings dam disaster, weather-related conditions and the spread of Covid-19. In 2019, production from the country’s largest producer, Vale SA, was down by 21.5% year-on-year, with the company having to shut down several mines in February 2019 due to safety concerns following the Brumadinho disaster.
In Q1 2020, production disruption occurred due to the Covid-19 outbreak, along with the production losses of around 4.5Mt in the northern system, unscheduled maintenance at the SD11 complex, worse-than-expected weather conditions, a delay to the start of the Morro1 mining section and an operational loss of 2.1Mt in the southern system.
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By 2024, however, Brazil’s production and overall exports are expected to grow steadily to reach 498.3Mt and 359.7Mt respectively, equivalent to CAGRs of 4.5% and 2.6% from 2020-2024.
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