Tombador Iron has temporarily halted production at its most important iron ore mine in Brazil as an ongoing blockade in the state of Bahia disrupted logistics.
Tombador said it was working with major shareholders to reopen the mine, but did not provide further details. The company and its trading partner Trafigura signed two contracts last month to export high-grade iron ore to the Asian market.
Tombador first produced premium lump and hematite iron ore in May 2021. According to its annual report, it produced over 754,000 tons of high-grade iron ore last year.
Tombador's shares decreased as much as 14.3% on the news, each down 7.4% to close at A$0.026. This allowed the company to have a market capitalization of A$55.56 million (US$39 million).
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