Brazilian iron ore miner Cabo Verde Mineração has reportedly halted operations at its Catumbi mine in southern Minas Gerais as rising Brazil-China freight rates and weak iron ore prices put pressure on profitability.
The Catumbi mine, located between the municipalities of Catumbi and Muzambinho, had been producing an estimated 600,000 mt of iron ore per year, mainly lump ore with an iron content of up to 64%.
Although Cabo Verde does not export its iron ore directly to China, the company has still been affected by higher international freight costs. Domestic customers use global market references to set local prices, while rising Brazil-China shipping rates have reduced FOB prices in Brazil, making production at the mine unprofitable.
Cabo Verde becomes the latest Brazilian miner affected by the challenging market environment, following production cuts by CSN Mineração, Itaminas and Usiminas Mineração. With no plans to restart iron ore production, the company will shift its focus to $460 million in investments in a rare earths project following a recent mineral discovery in the region.
VietnamSteel by Hoa Sen Group
