CVRD MAY AXE SUPPLIES TO CARAJAS PIG IRON PRODUCERS

摘要

CVRD has promised to cut iron ore supplies to Brazilian pig iron producers in the Carajas region who cannot prove they are complying with Brazil's environmental and labour laws, starting from next year. CVRD sells some 6 million tpy of iron ore to the Carajas area pig iron producers, who generally also depend on the iron ore miner to transport their products by rail to the coast for export. "CVRD is preparing a warning notice to be sent to its pig iron customers. In this notice it will announce that it will not renew supply contracts expiring in 2008 with those pig iron producers who cannot prove they are operating within the law," the company said. The decision follows repeated reports over the past year of incidences of slave labour and unauthorised cutting down of native forest by small-scale charcoal enterprises, which sell their produce to the region's pig iron producers.