Make Kitco Your Homepage

BHP restart mine after colossal disaster in 2015

Kitco News

Kitco News has launched its 2021 Outlook, which offers the most comprehensive coverage of precious metals markets in the new year. Trillions of dollars were pumped into financial markets in 2020 and that won't come without consequences. Economists expect that investors will be Bracing For Inflation in 2021.

(Kitco News) - BHP Group (BHP:LSE) say they have met the licensing requirements to restart operations at its Germano complex in Minas Gerais and its Ubu complex in Espírito Santo, Brazil, and has commenced iron ore pellet production.

Samarco's operations were suspended following the failure of the Fundão dam on 5 November 2015. The extensive work undertaken by the Renova Foundation to remediate and compensate for the damages of the failure of the Fundão dam in 2015 continues, and BHP Billiton Brasil Ltda. continues to support Renova in its work. By November 2020, Renova had spent approximately BRL 10.7 billion (approximately US$2.1 billion) on its remediation and compensation programs. By November 2020, approximately BRL 3.1 billion (approximately US$620 million) had been paid in indemnities and emergency financial aid to approximately 325,000 people.

The dam collapse in the city of Mariana caused 19 deaths and forced hundreds from their homes. It is largely considered to be the worst environmental disaster in Brazilian history after it left 250,000 people without drinking water and killed thousands of fish. An estimated 60 million cubic meters of waste flooded rivers and eventually flowed into the Atlantic Ocean.

The share price gapped up this morning but has subsequently pared some of those gains. There is a clear technical pattern on the daily chart below that is offering some resistance at the moment. if there is a break above the chart structure it could be bullish for the stock. On the downside, there is a significant support at 1855.2 but it does seem the bulls are in charge for now. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.