Brazilian CSN iron ore mines hit by strike action

Workers at Brazilian steelmaker and mining company CSN are taking industrial action after rejecting the company's proposal for a collective agreement on salaries and benefits.

The strike focuses on the Casa de Pedra and Pires iron ore mines in Minas Gerais state but it is unclear at this stage if production will be impacted.

Casa de Pedra has two on-site processing plants and production capacity of 30mn t/yr. Its output includes sinter feed and pellet feed, which is supplied by rail to the Port of Itaguai, where CSN manages the Tecar terminal.

Pires is alongside CSN's Engenho mine and produces sinter feed and concentrate, which is transported from a rail terminal outside the complex.

Trade union Sindicato Metabase Inconfidentes confirmed the strike action, calling for CSN to increase salaries and worker benefits, particularly considering the company's rising sales and profits.

CSN is Brazil's second-largest iron ore exporter, with reserves totalling more than 3bn t. Production of 6.7mn t in April-June was up by 9pc from the first quarter, whiles sales rose by 9pc to 8.1mn t.