Malfunctions in iron ore mines Brazil

Iron ore production in Brazil is facing new challenges after dam warnings began in the Corrego do Feijo mine area in Brumadinho just days after a nearby sump barrage suffered a catastrophic failure, the manufacturer said early Sunday.

“This dam is part of the Brumadinho complex,” Vale notes on its website. "The authorities have been informed and as a precaution, the community in the region is moving."

Vale, the world's largest iron ore producer, said it continues to monitor the situation at Dam 6 and uses pumps to drain the water. The company also said that civil defense has lowered the warning level enough to allow people in the area to return to their homes. The latest warning follows the failure of Dam 1 from Valais tailings, which exploded Friday afternoon at the same mining complex in the state of Minas Gerais in southeastern Brazil.

Such accidents in mines usually lead to production stoppages and inspections. Current challenges are affecting critical iron ore mining in Brazil's southern Vale system. Thus, some supply disruption is expected.