Brazilian iron ore producer MMX has filed for bankruptcy protection, the company announced.
MMX argued, among other points, it was "pushed" into a "severe crisis" due to a "delay'’ in obtaining an environmental license needed for its main project, the Serra Azul mine. Brazil's development bank, BNDES, which was expected to provide a BRL 4 billion financing for the project, later stepped back in its former position and didn't provide the money, in a decision that was described by MMX as "sudden."
Additionally, MMX argued the severe fall of iron ore prices, due to the slowdown of China's economy, also added to the company's woes.
In a letter addressed to investors, MMX said the approval of its bankruptcy protection plan in late August 2015 was "successful." It added it had potential to become a "great player" in both the Brazilian and the international iron ore markets.
"The fall in iron ore prices and the context of political and economic instability made it impossible for the company to achieve its revenue targets," the company said.
MMX's bankruptcy protection filing also includes its iron-ore unit MMX Corumbá, the company confirmed.