TORONTO (miningweekly.com) – Companhia Vale do Rio Doce, the world's biggest iron-ore producer, has suspended operations at two pellet plants at the port of Tubarão, Brazil, in response to slumping demand.

The two plants have a total production capacity of 7,3-million tons a year.

“The decision to curtail pellet production is due to the unprecedented contraction of the global demand for iron-ore and pellets,” Vale said in a statement.

The latest closures follow the shutdown last month of two other pellet plants at the port of Tubarão, and a further two plants that the company owns in joint venture have been idled until mid-January, Vale said.

The closures amount to a total capacity reduction of 29,3-million tons a year of pellets.

“In light of the severe global recession and the uncertainties about the future, Vale will continue to manage its production in line with its assessment of market conditions prevailing in the short term,” Vale added.

For an up-to-date list of companies that have announced cutbacks as a result of the financial crisis and commodity-price declines click here.

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