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Anglo's Minas Rio iron ore system suspended again after pipeline rupture

Anglo American PLC has been ordered to suspend operations at its Minas Rio iron ore mine in Brazil following another mineral pipeline rupture, Reuters reported March 30, citing a company statement.

The Minas Rio system moves iron ore via a slurry pipeline, which carries a mixture of iron ore concentrate and water from the mine and processing facilities over 500 kilometers to the Açu port in the Rio de Janeiro state.

"The event led the company to paralyze the process of resuming iron ore transportation," the company said, adding that employees will be sent on paid leave.

This comes recently after Brazilian environmental regulator Ibama granted approval to restart operations at Minas Rio, where operations were suspended March 12 following an ore pipeline rupture at the site, resulting in the leaking of a mixture of iron ore and water to a local watershed.

Federal prosecutors in Brazil are also investigating the ore pipeline rupture at the site.

The latest Reuters report cited a document from Ibama saying the company will only be allowed to resume operations when it ensures the security of the pipeline.