Brazilian iron ore miner, Mineração e Metálicos S.A. (MMX), resumed operations Tuesday at its iron ore mine located in Corumbá, Mato Grosso do Sul state, in western Brazil. MMX suspended operations back in December 2008 due to the weak demand caused by the global economic recession.
Despite resuming mining activities, MMX says that the suspension of its steelmaking/pig iron production unit at Corumba will continue until there are clear signs of a steel demand comeback in Brazil and abroad. In addition, 249 workers from the pig iron plant at Corumba will be laid off.
The Corumba mine, which started its operations in December 2005, has a production capacity of 6.3 million mt of iron ore per year and 400,000 mt of pig iron a year. The mine is expected to reach 6,3 million tons of iron ore by 2012, consisting of 60 percent lump, 23 percent sinter feed and 17 percent coarse fines.
In November, MMX said it would "postpone indefinitely" its plan to invest $200 million in building its billet plant at Corumba. MMX is part of mining and oil exploration conglomerate, Grupo EPX.