Vale SA announced Friday that it has declared force majeure for some iron ore delivery contracts due to heavy rains in the southwest part of the country.
Flooding and landslides in the states of Minas Gerais and Espirito Santo have reduced the company’s ability to transport iron ore and slowed operations at the port of Tubarao, the company said, adding that the impact on shipments could reach 3 to 4 million tons. However, Vale said it could boost shipments by as much as 2 million tons in Q1 2014 to make up for the loss.