Vale Declares Force Majeure on Some Iron Ore and Pellets Sales Contracts

Date : 02/05/2019 @ 10:37PM
Source : Dow Jones News
Stock : Cia Vale Rio Doce (VALE3)
Quote : 53.8  -1.7 (-3.06%) @ 10:45PM

Vale Declares Force Majeure on Some Iron Ore and Pellets Sales Contracts

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   By Stephen Nakrosis 
 

Brazilian miner Vale SA on Tuesday said it was declaring force majeure on some iron ore and pellets sale contracts, "as a result of the temporary suspension of the Brucutu mine production."

On Monday, Vale said a civil court in Brazil ordered the company to halt activities, including disposing tailings, which have the potential to increase risks to the dams at a number of its facilities.

Vale said none of the dams were used to dispose tailings except the Laranjeiras dam at the Brucutu mine. The impact from the temporary halt at that complex is about 30 million tons of iron ore per year, Vale said.

"Vale reinforces its understanding that there is no technical basis nor risk assessment to justify the court decision to suspend the operation and is adopting the appropriate legal measures to resume its operations the soonest possible," Vale said in prepared remarks Tuesday.

In January, a dam owned by Vale burst in the mineral-rich state of Minas Gerais. The disaster caused 134 confirmed deaths so far, with close to two hundred people still missing and probably dead, according to authorities.

 

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

February 05, 2019 17:22 ET (22:22 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.


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