The decision was made in light of a possible failure of five dams at both complexes, which are located in Minas Gerais, the same state where the Feijão mine dam collapsed last month.
The companies envision an investment from Glencore that will help fund construction in exchange for offtake of production of four million tonnes of iron ore a year.
According to Fitch Solutions, off-grid mines could benefit from reducing their dependency on diesel while taking advantage of the region's favourable climate conditions.
Iron ore continues to influence the ferrous complex, steel prices reflect the rising cost of iron ore and producers are passing it on to the consumers.
The final effect on seaborne volumes is yet to be seen, but it is likely that an expected increase in exports from Brazil for 2019 will instead be a small contraction.