CVRD steps up threat to cut supplies to pig iron producers

摘要

Brazil's CVRD has sent another seven letters to pig iron producers in Para, Maranhao and Minas Gerais states, warning that their iron ore supplies will be cut off if they do not prove within 30 days that they are fully in compliance with Brazil's forestry and labour laws, the company announced last week. This follows an initial two letters sent to major north Brazil pig iron producers Cosipar and Usimar the previous week, in which CVRD said it would cut off their iron ore supplies from September 1, following its receipt of information from federal environmental institute Ibama that it is investigating these companies for being in breach of forestry law. CVRD clarified on August 30 that it is also now giving Cosipar and Usimar 30 days from September 1 to prove that they are operating in accordance with the law before cutting off their supplies. CVRD said the measures are being taken in accordance with "its commitment to sustainable development in the regions where it operates".