Usipar seeks alternatives after Vale cuts iron supply

Thursday, 03 Jan 2008

BNamericas reported that Brazilian pig iron producer Usipar has turned to other sources of iron ore supply as a result of the halt of shipments from Vale.

An official from Usipar told BNamericas that "We are discussing the possibilities of action to reverse Vale's decision, which is based on a halt that has already been suspended due to the lack of real proof of irregularities at Usipar. In the meantime, we're working with iron ore in stock and with alternative supply."

Vale suspended iron ore shipments to the pig iron maker last month due to Usipar's alleged non compliance with environmental legislation, which resulted in the Pará environment department halting the company's operations. According to Usipar, the environment department carried out an inspection of its operations in December and determined a temporary halt of pig iron output was necessary based on a supposed possibility of contamination of the Arienga River. A state court reversed the halt due to the lack of evidence of contamination from Usipar's operations.