Vale, one of the world's biggest nickel producers, believes the renewed order to suspend the operation is "unfounded".
Brazil's environmental regulator had suspended Onca Puma's operating licence earlier this month due to alleged non-compliance but Vale was able to restart the mine within a week after a court reinstated the licence.
However yesterday, Vale said the Judge of the Court of Justice of the State of Pará, which had granted suspensive effect to the appeal filed by the State of Pará, had reinstated the suspension.
"Vale has started the process to halt the activities at Onça Puma mine, Pará, and it will continue to take the appropriate administrative and judicial measures to reverse the order to suspend mine operations, which it considers unfounded," it said.
Onca Puma accounted for almost 9% of the company's nickel production last year, excluding Vale New Caledonia.
Onca Puma was previously shuttered in 2017-2019 due to its alleged impact on indigenous communities and Vale had been ordered to pay millions in damages in 2018.
Vale's shares lost 1% in Brazil yesterday and the company is capitalised about US$75 billion.