Cabo Verde Mineração, a small iron ore miner based in southern Minas Gerais state, has reportedly halted operations at its Catumbi mine, which sits between the municipalities of Catumbi and Muzambinho.
CSN Mineração, Itaminas and Usiminas Mineração had previously cut production because of higher sea freight rates
The mine was producing an estimated 600,000 metric tons (mt) per year, mainly lump ore with an iron content of up to 64 percent.
Although it does not ship its ore to China, Cabo Verde was affected by rising sea freight costs because its domestic clients set local prices based on international market references. Insiders said higher Brazil-China freight rates caused a lower FOB price in Brazil, making its production unprofitable..
With no plans to resume iron ore production, the company will now focus on $460 million of investments in a rare earths project, following a recent discovery of those minerals in the region.
