Three other nearby dams, Forquilha I, II and III, have already been halted because of what the regulator deems as a "Level 2" emergency.

Rio, which could become the world's top iron ore producer this year, was beset by weather and operational issues in the first quarter which caused it to cut its annual guidance.

China's Dalian iron ore futures rose as much as 2.3% on Monday, the highest in more than ten days.

The news comes four years after the company's tailings dam burst at Germano in Brazil's worst environmental disaster.

Vale's net profit rose to $1.654 billion from $1.408 billion in the year-ago period, missing the $2.72 billion mean of analysts polled by Refinitiv.

FMG has been raising the mix of premium feed in its shipments with the addition of its West Pilbara Fines product.

Vale said on Monday it has temporarily shut down its Itabiruçu tailings dam.