Vale had previously advised Navios Holdings that it would not be performing a 20-year take-or-pay contract service contract for an iron ore terminal being built in Nueva Palmira, Uruguay.
Navios Logistics said that it believed that Vale’s position was without merit and it had started arbitration proceedings.
“No assurances can be provided that Navios Logistics will prevail in the arbitration or that Vale International will finally perform the contract. If Vale International fails to perform, there may be a significant impact on Navios Logistics’ future business,” Navios Holdings said.
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