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 riskier. The...