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[Ferro-Alloys.com] RIO DE JANEIRO – Brazil's Vale said on Monday output from its new S11D iron-ore mine in the Amazon region will be limited to 83 percent of full capacity as efforts to preserve cash and limit transport disruptions crimp a needed railway expansion.

The $14.3 billion project, Vale's biggest-ever investment, was widely expected to produce up to 90 million metric tonnes a year of iron-ore - the key ingredient in steelmaking - after a two-year ramp-up scheduled to begin by year-end.

But S11D will only deliver up to 75-million metric tonnes to international seaborne clients after a four-year ramp-up, Vale said, responding to an article last week in Britain's Financial Times business newspaper.

"There has been a replanning of the execution of construction work on the logistics corridor in a phased form in order to minimise interference with existing operations and optimise our cash flow without increasing the project's capital spending," Vale said.

• [Editor:Chen Zhen Seng]