Ferrous Resources, the Brazil iron-ore producer that counts billionaire Carl Icahn and Glencore among its shareholders, cut output by 24 per cent as prices of the steel-making raw material collapse amid lack of financing.

Belo Horizonte, Brazil-based Ferrous plans to produce 3.8 million metric tons of iron ore this year, down from 5 million in 2014, chief executive officer Jayme Nicolato said at an event in Rio de Janeiro on Tuesday. The reduction will allow the producer to avoid operating losses when shipping the ore to Asian customers, he said.

"We break even on those 3.8 million tons," Nicolato told reporters on the sidelines of the CRU World Steel Conference in Rio. "It allows us to pay the bills and survive."

A global supply glut, combined with slowing Chinese demand, has led to a collapse of iron-ore prices, forcing high-cost producers from Brazil to Canada to shut capacity at the mines. Ore with 62 per cent content at Qingdao fell to $US56.95 a ton on Tuesday, according to Metal Bulletin Ltd, the lowest since at least May 2009.

While the lower prices have dried up financing for iron-ore projects worldwide, Ferrous still has a possibility of securing funding for its Viga mine expansion this year, Nicolato said. Fort Worth, Texas-based Crestline Investors became a shareholder of company after buying a 4 per cent stake, he also said.

"The possibility of getting finance exists; if it's going to happen or not, that's difficult," he said. "This is the only project with all the licenses in Brazil."