Anglo American suspends contract with Bahrain Steel after a leak in MG | Economy

The contract with Bahrain Steel is about $ 1 billion, according to Reuters calculations based on Anglo 's average prices at its Minas Rio mine last year.

Bahrain Steel, which produces iron ore pellets for steelmakers, said the miner declared force majeure in April in his 20-year deal and is expected to deliver 13 million tonnes of iron ore a year.

Anglo froze the operations of the Minas Rio system in March after two leaks in the pipeline that transports its iron ore to an export terminal off Rio de Janeiro.

Anglo ore is transported from the mine and enrichment plant, to Conceição do Mato Dentro and Alvorada de Minas (MG), up to the port of Açu, in São João da Barra (RJ), along a 529 kilometer pipeline. which runs through 33 municipalities in Minas Gerais and Rio de Janeiro.

The suspension of the contract with Bahrain underscores the seriousness of Anglo 's problems with the project, bought at the height of the commodity boom ten years ago, for $ 5.5 billion.

However, Bahrain Steel has ruled out a serious impact on its own operations.

"We effectively guarantee and diversify our sources of raw materials, ensuring the continuity of our production and our ability to meet the needs of our customers," said Bahrain Steel, which belongs to Foulath, an investment vehicle focused on In the Middle East.

Anglo said that he would not comment.