Itaminas, a prominent private Brazilian mining company, will reduce iron ore production at its plant in Sarzedo, in the Brazilian state of Minas Gerais, citing rising costs, chiefly ocean freight, driven higher by the conflict in the Middle East. The company also said it will place 300 employees -one third of its direct workforce- on a one-month collective vacation.
Operations will not shut down completely, the company noted. It has already notified workers, unions and the Ministry of Labor of the vacation period, which begins on September 28.
Itaminas said it will use the pause to upgrade the plant, mainly its technology, with investments already included in the annual budget.
The company's iron ore production capacity is currently estimated at 6.5 million metric tons (mt) per year, though expansion plans could attain 10 million mt per year.
Its production line includes pellet feed, sinter feed and small lumps.
Pellet feed has an iron content of 62-64 percent, while sinter feed and small lumps range from 56-58 percent.
Small lumps, known locally as hematitinha, measure 13-19 millimeters and are used as feedstock for the small blast furnaces of independent pig iron producers in the southeastern states of Minas Gerais and Espírito Santo.
