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November 7, 2015

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Mine collapse kills 2, count to rise

Casualties from two collapsed dams at a Brazilian iron ore mine mounted yesterday as rescue teams worked through the night to find dozens missing in mudslides that devastated a village in the country鈥檚 southeast.

A spokesman for firefighters leading the rescue confirmed 30 injuries and at least two deaths, but said the count was likely to rise as the search advanced slowly after mudslides knocked out roads and cell towers.

鈥淚n reality there are a lot more, but we can鈥檛 confirm any more than that. We don鈥檛 even know that we鈥檒l find everybody,鈥 said a firefighter in the nearby city of Mariana.

He said the local hospital was 鈥渟aturated鈥 and victims arriving by helicopter were being sent to nearby Ouro Preto.

The head of emergency planning at Samarco, the joint venture company that runs the mine, told GloboNews of reports of seismic activity in the area in the hour leading up to the incident. The company鈥檚 press representatives could not confirm the reports.

The collapse paralyzed operations at the mine, a joint venture between Vale and BHP Billiton, the world鈥檚 top iron ore miners, and raised fears of an expensive cleanup.

Analysts at Clarksons Platou Securities said yesterday that the likelihood of a lengthy stoppage at the Germano mine, which accounts for about one-fifth of seaborne pellet market, could lift iron ore prices. Samarco produces 30 million tonnes per year of pellet, used to make steel.

Pellet prices have shed by one-third this year to their lowest in six years amid a global glut.

Television footage from the scene showed the village of Bento Rodrigues devastated after mudslides unleashed waste water when the dams collapsed, leveling trees, tearing roofs off homes and leaving a car precariously perched on top of a wall.

Hundreds of families were evacuated from the area after escaping to higher ground, Duarte Junior, the mayor of Mariana told TV channel GloboNews after declaring a state of emergency yesterday morning.

BHP Billiton CEO Andrew Mackenzie said at a news conference overnight that a full assessment of casualties and damage was hampered by nightfall.


 

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