Usiminas cuts iron ore output in Brazil amid rising freight costs
2026-09-08 10:30:14 [Print]
Mineracao Usiminas (Musa), the mining subsidiary of Brazilian steel producer Usiminas, has announced an indefinite suspension of operations at its Samambaia mine in Itatiaiu?u, Minas Gerais state, citing rising freight costs linked to the ongoing conflict in the Middle East.
The Samambaia mine accounted for 30% of Musa's total annual capacity of 9 million metric tonnes, the company said, while its Mina Oeste asset will continue mining and flotation activities.
"The measure is part of a series of actions the company is taking to address adverse external conditions, specifically the decline in iron ore prices and the surge in maritime freight costs," Musa said in a statement.
According to the company, since the Middle East conflict escalated in late February, freight rates on the Brazil–China route have surged from $22–23 per tonne to peaks of $37–38 per tonne.
The Samambaia mine accounted for 30% of Musa's total annual capacity of 9 million metric tonnes, the company said, while its Mina Oeste asset will continue mining and flotation activities.
"The measure is part of a series of actions the company is taking to address adverse external conditions, specifically the decline in iron ore prices and the surge in maritime freight costs," Musa said in a statement.
According to the company, since the Middle East conflict escalated in late February, freight rates on the Brazil–China route have surged from $22–23 per tonne to peaks of $37–38 per tonne.
