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Vale Declares Force Majeure

Vale the largest producer of iron ore in the world had said that it will lose 2 million metric tons of iron ore due to the heavy rains that are plaguing three states of Brazil. The mining giant has declared force majeure on iron ore shipments.

Force majeure is a legal cause that allows companies to miss deliveries. In case of the Rio de Janeiro based mining giant the legal clause will be coming into effect on a series of iron ore contracts that it has in place.

The company statement said that heavy rains since mid December of 2011 in the states of Minas Gerais, Rio de Janeiro and Espirito Santo have created difficulties for their operations in the South and Southeast systems. It continued to say that they were contacting customers, in accordance with the terms of respective contracts.

On the other hand the Brazilian miner has not sold its first mega iron ore cargo delivered by Berge Everest. It has instead stored the material in an area near the port. The 388,000 deadweight tonne vessel carried 350,000 tonnes of iron ore, which it unloaded at China's Dalian port. Analysts say that Vale is probably waiting for the demand from the Chinese mills to pick up before it considers selling it.

Joel Scanlon

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Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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