Vale declares force majeure on iron ore, pellet contracts after court ruling

Brazilian miner Vale has declared force majeure on a number of iron ore and pellet contracts with customers, following the halt of its Brucutu mine in the state of Minas Gerais, the company said on Tuesday February 5.

A court in Belo Horizonte, the capital of Minas Gerais, has prohibited Vale from using eight tailings dams on February 4, with Brucutu being the most-affected operation. Annual output could fall by as much as 30 million tonnes because of the restriction.

This adds to a production cut of 40 million tonnes per year, while the miner decided to decommission ten dams that operate through the upstream method, which is considered...

Published

Renato Rostás

February 06, 2019

14:45 GMT

São Paulo