Vale (VALE) has regained its permit to operate in the Brazilian city of Congonhas after meeting the requirements set by local authorities, the city government said Wednesday.
Operations at Vale’s (VALE) Fabrica and Viga mines were halted in January after a water overflow at the units that analysts say account for ~2% of the company’s iron ore production outlook for this year.
The company recently reaffirmed its FY 2026 iron ore production guidance of 335M-345M metric tons, but analysts said the Fabrica and Viga suspension was a negative, as the units have an annual combined output of ~8M tons.
It is unclear whether Vale (VALE) is approved to resume operations, as the Minas Gerais state government had also suspended activities at the mines.