Brazilian mining giant Vale will not fulfill a contract to use a terminal being built by Navios’ South American subsidiary. The agreement, signed in 2013, called for Vale to store and tranship between 4 million and 5 million tonnes annually of iron ore from the facility. The 20-year contract included an option to increase the facility's capacity to 6 million tonnes. Navios may have only spent some $29.5m to date on the project But the long-lead times for some construction materials may leave Navios on the hook for additional costs if it terminates the project. Also the value of Navios’ stake in the logistics business by over half, from $244m to $110m.
