MMX Mineracao & Metalicos, the mining firm in Brazilian businessman Eike Batista’s EBX group, is halting operations at the Corumba iron ore mine, in a move to cut costs.
The suspension of production, which will commence this month, will go on for six months.
MMX said in a statement to the market regulator that the proposed move is projected to improve the company’s capital use.
The company produced 7.4 million tons of iron ore last year, of which, Corumba mine accounted for nearly 1.4 million tons.
In its regulatory filing, MMX said it has sufficient stock of the mineral to meet its sales contracts while saving on its operating costs.