MAC: Mines and Communities

Federal prosecutors seek suspension of Vale´s Paragominas bauxite complex, Brazil

Published by MAC on 2010-12-13
Source: Dow Jones, Bloomberg (2010-12-01)

According to Vale's corporate website, its mine in Paragominas, Pará State is capable of producing 9.9 million metric tons of bauxite per year: "Paragominas is integrated with Alunorte's alumina refinery by means of the first bauxite ore pipeline in the world, which extends for 244 kilometers."

Norway's giant conglomerate, Norsk Hydro, is about to take over the majority of Vale's aluminium business in Brazil, see: http://www.hydro.com/upload/Documents/IR%20other/Letter%20to%20the%20shareholders%20of%20Norsk%20Hydro%20ASA.pdf

However, the Brazilian government last month filed for suspension of the Paragominas mine, claiming a local community has already been harmed by mining activities.

Vale may also have to halt further construction of its pipeline, as prosecutors in Para state argue that it will encroach on the land of nearly 800 families.

Brazil Ministry Requests Output Ban At Vale Bauxite Mine - Estado

By Diana Kinch

Dow Jones

30 November 2010

RIO DE JANEIRO - Brazil's Federal Public Ministry has filed court action requesting a suspension order on production at part of miner Vale SA's Paragominas bauxite mine in Para state, north Brazil, alleging environmental irregularities, local Estado news agency reported Tuesday.

The ban is on the Miltonia 3 mine, part of the Paragominas mine complex, Estado said. The public ministry claims Vale has conducted mining activities that have harmed a local community because environmental licensing conditions weren't met, according to Estado.

Vale, which will complete sale of the Paragominas mine to Norsk Hydro by the end of this year, said production continues at the mine site, one of Brazil's biggest bauxite mines, as it has not yet received formal notification of the public ministry ruling.

"Vale will wait for a formal communication from a federal court so that it can present its defense," a Vale spokeswoman based in Para told Dow Jones Newswires.


Vale Pipeline May Be Delayed by Suit, Brasil Economico Reports

Lucia Kassai

Bloomberg

1 December 2010

Vale SA may be forced to suspend construction of a bauxite pipeline in Brazil after federal prosecutors filed a lawsuit seeking compensation for residents affected by the project, Brasil Economico reported.

Prosecutors in Para state say Vale should indemnify 788 families, who are descendants of former slaves, because the pipeline will pass through their land, the Sao Paulo-based newspaper said.

Vale's press office didn't immediately return an e-mail from Bloomberg News seeking comment.

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