As a result of the recent drop in global iron ore prices, Anglo American has granted a 20-day “collective vacation” for the 200 workers of its Minas-Rio iron ore mining project in the city of Conceicao do Mato, in the state of Minas Gerais.
The company is said to have suspended the hiring of 35 contractor workers in the city as well as other 40 employees from a third party engineering company, which was working on the project.
According to Anglo, the measure is part of a company’s operational cost adjustment strategy. According to media reports, Anglo’s decision of granting its workers collective vacations was influenced by the difficulties the company is currently facing in getting the environmental licenses its needs in order to operate in the city.
The Minas-Rio project has received about BRL 8.4 billion in investments, which are being destined to the production of 26.5 million mt of the commodity per year. Anglo expects to produce between 11 and 14 million mt of iron ore at the Minas-Rio iron ore project this year.