Vale suspends some operations at Brucutu iron ore mine

Brazilian mining company Vale has stopped operations at a portion of its second-largest iron ore mine Brucutu in the Minas Gerais province.

Operations were suspended on instructions from the mining authority. The partial suspension will not affect iron ore production at the 30mn t/yr mine.

The mining agency thinks Vale has exceeded its mining limit for the mine, but Vale contends it is within this limit.

Vale has reiterated its guideline for 307mn-332mn t of iron ore shipments in 2019, down by 50mn-75mn t on the year.

Brazilian iron ore shipments to China had spiked in August, leading to swelling imported portside iron ore stocks at major Chinese ports and an erosion in the value of Vale's bestselling BRBF fines.

But prices of Vale's BRBF fines and IOCJ fines have recovered this week, along with other mainstream grades, on optimism over October demand and as China's economic outlook lifted demand for seaborne iron ore.