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BHP -5.3% premarket after dam bursts at Brazil mine

Nov 6 2015, 08:29 ET | About: BHP Billiton Limited (BHP) | By: Carl Surran, SA News Editor

BHP Billiton (NYSE:BHP) -5.3% premarket and -5.7% in London as investors worried about the damage to a Brazilian iron ore operation it jointly owns caused by a major dam burst.

At least 17 people reportedly have died, with more than 30 injured and dozens missing, after a tailings dam at an iron ore mine in the Minas Gerais region of Brazil burst and devastated a nearby rural village with mudslides.

Samarco Mineração, the JV between BHP and Vale (NYSE:VALE), says it has not established what had caused the dam to burst; Vale -3.2% premarket.

The incident is shaping up as the most deadly incident in BHP’s long history in mining and a “devastating stain” on the company’s international reputation.

How To Interpret China’s Decision To Support Its Iron Ore Industry

Summary

  • China has taken action to support its iron ore industry after prices continue to drop.
  • China’s move means that it doesn’t want to rely on foreign supplies even if they’re cheaper.
  • Iron ore suppliers outside of the big four are now at even greater risk than before.

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