Iron ore rose 6 percent as Vale forced to close mining complex

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The price of iron ore was on the rise on Monday after Brazilian miner Vale had to shut down work at a large iron ore mine due to an outbreak of the corona virus among workers.

The price of a ton of iron ore rose 6 percent to more than $ 103 on Monday in Singapore, the highest level since August last year. A court forced Vale to stop work at the Itabira mining complex after 188 workers tested positive for the virus. That iron ore mine accounts for about 10 percent of Vale’s production. The company must now first comply with certain safety rules before activities can be resumed.

Vale warned that iron ore shortages could arise in the Brazilian market. The company does maintain its production expectations for the entire year. Shipments of iron ore from Australia are also rising sharply.

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