Brazilian Vale cuts iron ore production at the end of the year

In a presentation released Thursday morning, the company lowered its year-end iron ore production capacity forecast to 343 million tonnes from 350 million tonnes a year earlier.

Issues holding production back include licensing its Sistema Norte and Mutuca assets in Brazil, as well as temporary restrictions on the disposal of mining waste at its Itabira mine, Vale said.

What is the damage to the metal manufacturing company?

During a conversation with analysts later in the morning following Vale's Q2 results Wednesday night, executives also warned that an ongoing strike at its Sudbury, Canada facilities would hurt third-quarter production. They said company and union representatives returned to the negotiating table within 10 days trying to negotiate a deal.

In response to the call, Vale executives said they were confident in meeting the updated forecasts for the end of the year.