From The Telepgraph:
The future of BHP Billiton’s Samarco iron ore mine in Brazil has been thrown into doubt after the mining giant admitted for the first time that it cannot guarantee that it will be reopened.
BHP, which co-owns Samarco with Brazilian mining giant Vale, is expected to face uncomfortable questions about the disaster at its London AGM next week, ahead of the one-year anniversary of the dam’s collapse.The FTSE 100 miner warned that the operation would need to be economically viable to justify a restart and therefore its future is “not assured”, it has told The Telegraph.
“It’s very important for the region, the employees, the shareholders and the country that Samarco restarts,” said Dean Dalla Valle, BHP’s commercial officer, who has led the Anglo-Australian firm’s response to the disaster since February.
My understanding of the break even for the mine is in the $35-40 range, and that’s before any more expensive dam redesigns and reconstructions, so it may not be viable long term. I no longer include it my outlook numbers.
