The development follows a similar suspension at the mine in February.

In the latest twist in the legal challenges facing Vale’s operation of the Onça Puma mine in Brazil, Pará state’s environment department successfully appealed against a previous court ruling which had reinstated the mine’s operating licence. Vale confirmed the development in a company securities filing. In response, the mining giant stated that it would adopt the appropriate legal measures in a bid to overturn the latest decision. 

In February, the environment department suspended Vale’s Onça Puma mine operating licence. At the time, the department highlighted irregularities in an annual environmental report and “non-compliance” on mining mitigation efforts, which it believed led to conflicts with local communities. This was a claim that Vale denied at the time, adding that it would cooperate with local authorities to address the issue. It later received an injunction temporarily permitting a resumption in operations.  

Vale acquired the Onça Puma laterite deposit in the southeast of Pará state, Brazil, in 2005. This nickel ore is then processed at its 27ktpy Ni-in-ferronickel plant, which is sold to its stainless steel customers. The recent developments at the mine follow previous suspension orders in 2017 and 2021 relating to allegations of mining pollution and social issues, resulting in the halting of nickel processing at the Onça Puma plant. It remains to be seen how much of an impact the latest suspensions will have on finished nickel production, however, ferronickel output had already been put on pause while the furnace rebuild is completed.