Vale loses license at dam that caused iron-ore force majeure

Vale’s licence to operate a dam key to production at one of its largest mines was revoked by a Brazilian state regulator on February 5, adding another hurdle to efforts by the iron ore king to return to normal operations. Shares declined.

The world’s largest miner of the steelmaking ingredient declared force majeure on some of its contracts Tuesday after a judge forced it to suspend some operations at its Brucutu mine – a move that it said would result in an annual production loss of 30-million metric tons. Brucutu’s restart is now conditional on both overturning the court injunction and the reinstatement of the dam’s license, Vale said in a statement.