Brazil's Vale SA (VALE) - Get Report announced plans to shut down and dismantle all upstream dams after a fatal disaster last Friday. Vale's Feijao dam broke Jan. 25 in the town of Brumadinho, Brazil, killing at least 65 people, and hundreds remain missing.
About 10% of the company's annual iron ore output will be affected by the shutdown, though Vale said it will try to offset by increasing production elsewhere, reports say.
Meanwhile, iron ore prices are rising, as seen in the Metals and Mining ETF (XME) - Get Report , at $30.06, up 2.6%. Shares of producers are soaring. Cleveland Cliffs Inc. (CLF) - Get Report rose 17.74% after Vale announced it cut in iron ore production. Shares were at $10.82, up $1.63.
Vale shares rose $1.11, or 9.67%, to $12.59. Tuesday, the company's board suspended its planned dividend, share buybacks and executive bonuses.
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