Peru's Shougang Hierro halts operations after port infrastructure collapse

Chinese iron ore mining company Shougang Hierro Peru suspended operations after part of its dispatch infrastructure collapsed at its shipping port, the company said in a statement to workers on Monday.

The incident, which occurred on May 5, led to an overstock of iron ore and halted the company's ability to ship material, forcing it to suspend production, the company added. The company has declared force majeure, meaning that circumstances outside of its control will prevent it from fulfilling its contracts.

Last year, Shougang reported production of 13.1 million tonnes of iron ore and sales of $1.69 billion, according to data from Peru's Ministry of Energy and Mines.

The company said repairs could take four to five months, as the damaged equipment must be manufactured in China. During that period, it will grant employees their pending vacation time, it added.

(Reporting by Marco Aquino; Editing by Jacqueline Wong and Christian Schmollinger)