“The halt in production comes at a time when several iron ore producers have issued downward revisions to production guidance, tightening the market.”
“The iron ore that Minas Rio was producing – pellet feed – is a type that is currently in demand, with record price premiums achieved late last year.”
Griffiths added: “Minas Rio will now miss the opportunity to sell its product during the tail-end of these highs. And with the market tightening, we could see premia for quality ores stay higher for longer.”
“Whilst Minas Rio is not producing, the company is not able to fully demonstrate its ongoing commitments to the mining tenements. Therefore, this could potentially delay Minas Rio's ramp-up to its ultimate capacity of 26.5 million tpy.”
