(Bloomberg) -- Vale SA declared "force majeure" in a series of contracts for the sale of iron ore and pellets as a result of the suspension of production at the Brucutu mine, potentially roiling the market for the steelmaking ingredient.

The company has previously said it will not declare force majeure for its iron ore contracts after the deadly tailings dam collapse in Brazil last month.

Key Insights:

• The company temporarily halted some operations at its Brucutu mine in Brazil, potentially tightening global supply that’s already in jeopardy following Vale’s announced plans to cut output by 40 million tons as it decommissions some of the tailings dams.
• Vale’s failure to meet its contractual obligations could roil the iron ore market that has already seen prices climb since the collapse at a different mine in Minas Gerais in late January, leaving more than 100 dead and wiping out part of a town
• The move to shut the Brucutu mine could “wipe out” almost all the forecast global production growth in the steelmaking ingredient, Barclays warned.

Get More:

• For more details on the company statement, click here.

To contact the reporter on this story: Luzi Ann Javier in New York at ljavier@bloomberg.net

To contact the editor responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net

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