Vale Suspends Operation at Malaysian Distribution Centre Amid Fire Broke Out

World's largest iron ore miner Vale has temporarily suspended operation at its Malaysian Distribution Centre for about 10 to 15 days owing to fire broke out. The operation hault is to add to the initial disruption caused at Vale due to force majeure so declared due to dam collapse on 25th Jan'19.

What is Malaysian Distribution Centre?

Malaysian distribution Centre is the supply point in Asia where Brazilian ore is stored and blended facilitating reduced delivery time from Vale. The ore supply from distribution centre drops the delivery time to 10 days against 45 days from Brazil. The distribution centre handles around 30 MnT of iron ore per year.

Amidst force majeure declared by Vale, the miner cut down 40 MnT iron ore and pellet availability along with additional 30 MnT of raw material shortage due to operation hault at Brucutu mines. The fire broke out at Malaysian centre is expected to further increase material shortage in the global market.