Vale informed that it is declaring force majeure on a number of its iron ore sales contracts effective from January 11 2012.

It said “We are communicating with customers as required under our agreements with them.”

The release said “High rainfall since mid-December 2011 and continuing over the last few days in the Brazilian states of Minas Gerais, Rio de Janeiro and Espírito Santo has created serious challenges to the operations of our South Eastern and Southern Systems. Several areas of these states are flooded and local governments have declared a state of emergency in a number of municipalities.”

The release added “So far, we estimate a loss of 2 million tonnes in iron ore shipments. We will disclose further information related to the evolution of these events until the situation has been normalized.”