BNamericas reported that Brazilian mining and metals group Vale has resumed iron ore shipments to Pará state based pig iron maker Usipar.
It may be noted that Vale had suspended sales to Usipar in late 2007 due to alleged noncompliance with environmental legislation, which resulted in the Pará state environment department forcing the halt of Usipar's operations.
According to Usipar, the environment department carried out an inspection of its operations on December 13th 2007 and determined a temporary halt of pig iron production was necessary based on a supposed possibility of contamination of the Arienga River. But a state court reversed the environment department's halt order due to the lack of evidence of contamination from Usipar's operations.
Mr Eduardo Carvalho executive president of Cosipar, parent company of Usipar, said that "Vale understood that there is no proof of any environmental damage."
Meanwhile, a Cosipar spokesperson said that Vale has not yet resumed iron ore sales to another unit of Cosipar, located in Pará state's Marabá city. The unit in Marabá is operating with iron ore provided by other suppliers. He added that "In the case of Cosipar unit in Marabá, we continue with negotiations with Vale, by sharing information about our operations and our compliance with the environmental legislation."
Usipar, located in Barcarena city, has pig iron capacity of 500,000 tonnes per year and continued operating normally despite the halt in iron ore supply.
