Mining and fertilizer firms in Brazil suspend operations amid rising costs

Mining and fertilizer companies in Brazil are implementing workforce reductions due to rising costs and raw material shortages.

Itaminas will grant collective vacations to approximately 300 employees in Sarzedo, Minas Gerais, starting in October. The company is temporarily suspending part of its iron ore production due to a sharp increase in maritime freight costs for exports, particularly on routes between Brazil and Asia. Freight costs for Capesize vessels to China have nearly doubled normal levels, reaching over US$ 40 per ton, which accounts for roughly 40% of the commodity's price.

Meanwhile, Eurochem has suspended the contracts of about 450 employees at its Serra do Salitre complex. The company cited a shortage of sulfur, a critical raw material for producing sulfuric acid and phosphate fertilizers. The global sulfur supply has been restricted by geopolitical tensions in the Middle East and disruptions in shipments from Russia, Kazakhstan, and Turkey. In Brazil, sulfur prices have risen 230% compared to last year.