Brazil's Vale said it may idle Malaysia iron ore terminal until March 31

London — Brazilian miner Vale said Wednesday it may suspend iron ore shipments to its Malaysian terminal and distribution center this month, which would lead to 800,000 mt in lost shipments over the first quarter.

Vale is planning for contingency measures due to disruption from the coronavirus outbreak on activities at the Teluk Rubiah iron ore transhipment center, which may close from March 21 through to March 31, the company said in a statement.

Vessels already heading to Malaysia will be redirected and redistributed among Vale's blending facilities in China, it said.

Vale said it expects an impact on sales of about 800,000 mt in Q1, with an expected "immaterial cost increase" due to additional logistics operations.

Vale expects no impact to iron ore production and sales volume in 2020.

The Teluk Rubiah Maritime Terminal handled 23.7 million mt of iron ore shipments in 2019.

"Vale is communicating with the authorities to clarify supposed restrictions imposed by the local government on transportation between cities, what could limit the access of workers to TRMT," the company said..