Reportedly, Vale SA is declaring force majeure on some of its iron ore sales contracts by reason of heavy rainfalls since December in southeastern Brazil, especially in the state of Espírito Santo where landslides and floods obstructed the iron ore transportation capacity through the EFVM railway and the operations at the Tubarao port.
Current estimated impact on iron ore shipments is around 3 to 4 million tons in 2013, of which up to 2 million tons can be potentially recovered in Q1 of 2014.
Vale states that it is now safely resuming its operations in the coming days and minimizing the damage of the rains. Further information related to the FM will be published until the situation has been normalized.
Source:
http://www.yieh.com/2.2.01.01stainlesssteelnews.aspx?no=67939&division=A9
