Brazilian iron ore miner and pellet producer Samarco and local unions have agreed to extend the temporary suspension of work contracts for nearly 800 employees. The extension would be for an additional five months, Kallanish learns from a statement issued by the company.

The company will begin its fourth period of layoffs as from 1 November. The new suspension period will last until the end of March 2018. “Workers who accept the agreement will maintain all the current benefits, as well as receiving an indemnity,” Samarco says.

The miner adds that it cannot forecast when it will resume its operations. Samarco has already applied for a corrective operational licensing (LOC) from the Complexo de Germano and has made a license application for tailings disposal at Cava de Alegria Sul. “Environmental licensing processes are under way but there is no expected date for the resumption of operations,” Samarco adds.

Production at the mine has been halted since November 2015, after a tailings dam burst which killed 19 people and flooded areas in two states in southeast Brazil.

Samarco Mineração is co-owned by Vale and Australia`s BHP Billiton.