Cia. Vale do Rio Doce, the world's biggest iron-ore producer, said it will cut pellet production by two thirds at the Samarco plant the company co-owns with BHP Billiton Plc.
Samarco, located in Espirito Santo state, southeast Brazil, will reduce output from the end of this month to mid-January ``in accordance with market conditions,'' Rio de Janeiro-based Vale said today in an e-mailed statement.
Samarco can produce 21.6 million tons of pellets annually. Its third pellet plant, which started up in April and has 7.6 million tons of annual capacity, will continue to operate, Vale said.
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