Mining Weekly reported that Brazil’s recent surge to an iron ore production giant is being slowed by bureaucratic hurdles.
As quoted in the market news:
However, S&P primary credit analyst Rafaela Vitoria said companies tend to underestimate the execution time of projects in Brazil.
For example, at the end of 2010, Vale’s Serra Sul project had a start-up estimate for the second half of 2014. However, in April Vale announced it would now only be by the second half of 2016. Vale said it expected the government to grant its initial licence by the end of June, but did not expect to receive the final installation licence for the actual construction of the mine until a year later.