Vale’s terminal on Madeira island has loading capacity of 25,000 tonnes of iron ore per hour. Credit: Bishnu Sarangi from Pixabay.

The Brazilian city of Itaguaí has imposed a fine of $430,348 (Rs2.3m) on a port subsidiary of miner Vale for non-compliance with environmental laws.

The fine was imposed following an inspection of the iron ore and solid bulk terminal, which is operated by Vale subsidiary Companhia Portuária Baía de Sepetiba (CPBS).

Located on Madeira island in Rio de Janeiro, this terminal has an estimated loading capacity of 25,000tph of iron ore. It sources ore from Minas Gerais via rail.

The inspection report identified 17 irregularities, including an expired operating licence.

However, contesting the report, Vale was quoted by Reuters as saying that CPBS has a valid operating licence granted by the state environmental agency Inea for the terminal.

The news agency stated Inea had also confirmed the validity of the terminal’s state license and its renewal.

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Last week, Vale secured a permit from the state environmental agency in Rio de Janeiro to reopen its iron ore terminal in Mangaratiba.

This terminal was temporarily closed due to a lack of an operating permit.

ATP, an association representing private port operators, alleged that the authorities’ decisions to close, suspend and fine Vale’s terminals in Itaguaí and Mangaratiba were ‘arbitrary’, reported the news agency

Earlier this month, Vale divested its stake in Vale New Caledonia (VNC), which operates the Goro nickel mine and a processing plant in New Caledonia, to the Prony Resources New Caledonia consortium.