Brazilian mining and fertilizer industry disruptions

Mining and fertilizer companies in Brazil are suspending operations and reducing workforces due to rising costs and raw material shortages.

In the mining sector, Itaminas is implementing collective vacations for approximately 300 employees in Minas Gerais. The company is partially suspending iron ore production because maritime freight costs for exports to Asia, specifically Capesize vessels to China, have nearly doubled to over US$ 40 per ton.

In the fertilizer sector, Eurochem has suspended contracts for about 450 employees at its Serra do Salitre complex, citing a shortage of sulfur. Global sulfur supplies have been restricted by geopolitical tensions in the Middle East and shipment disruptions from Russia, Kazakhstan, and Turkey, contributing to a 230% price increase in Brazil compared to last year.

Mosaic Fertilizantes has also begun halting or reducing operations across several Brazilian states, including Minas Gerais and Goiás, due to low demand and the global sulfur shortage. These adjustments are projected to result in up to 1,200 job cuts in Araxá and Patrocínio, and approximately 650 dismissals in Catalão. The company describes these measures as temporary.