SAO PAULO (Reuters) – A call by Brazilian mining firm Vale SA to halt manufacturing at ten websites in Minas Gerais state following a lethal dam catastrophe has affected deliveries of iron ore pellets to purchasers, newspaper Valor Econômico reported on Monday, citing business sources.
Vale is attempting to resolve the issue by bringing iron ore pellets produced within the northeastern state of Maranhão to purchasers within the southeast. The longer distances concerned are including to transportation prices, Valor stated.
Vale didn't instantly reply to a request for touch upon the Valor report.
Privately owned Grupo Ferroeste advised the newspaper its pig iron unit in Espírito Santo state has turned off a blast furnace affecting about 40 % of the plant's manufacturing capability. Ferroeste didn't instantly reply a Reuters request for remark.
Marco Polo Lopes, president of foyer group Aço Brasil, advised the newspaper the state of affairs may pressure different steelmakers to halt manufacturing if nothing is finished to normalize provides.
Aço Brasil urged fast motion to reassess safety of the tailings dams in Minas Gerais to keep away from extra disruptions within the steel-making provide chain.
The tailings dam at Vale's Corrego do Feijao iron ore mine in Minas Gerais burst on Jan. 25, killing 228. One other 49 persons are nonetheless lacking.
Vale's manufacturing cuts, estimated at about 93 million tonnes of iron ore, may shave 0.2 proportion factors from Brazil's gross home product this 12 months, the Getúlio Vargas Basis advised newspaper O Estado de S. Paulo's Sunday version.