Vale (NYSE:VALE) declares force majeure in a series of contracts for the sale of iron ore and pellets as a result of the suspension of production at its Brucutu mine, its largest in Brazil's Minas Gerais state.
The miner had said it would not declare force majeure for its iron ore contracts after last month's deadly tailings dam collapse in Minas Gerais.
Vale’s failure to meet its contractual obligations could roil the iron ore market that already has seen prices rise since the dam collapse at the Feijão mine and the company's announced plans to cut production by 40M tons as it decommissions some of the tailings dams.
Iron ore prices have rallied more than $10/metric ton in Singapore since Jan. 25, when the dam broke.
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