Brazilian pellet producer Samarco, a 50/50 JV between BHP Billiton and Vale, is looking to cut jobs following a recent extension of a paid leave.
The company, whose operations have been halted since late last year following a deadly iron ore waste dam burst, said it needs to adjust its structure to the new reality it is likely to face, since pellet output will decrease significantly. A media report said Samarco will produce at 60 percent of its original capacity once production resumes.
A local union said Samarco is likely to dismiss 1,200 workers. Recently, the city of Mariana approved Samarco to resume operations, however, it still needs state and federal approvals.
The Ministerio Publico Federal in the state of Minas Gerais, a body of public prosecutors, recommended this week that approval for Samarco resume operations should not be granted.