October 11, 2008

Brazilian court revokes Cosipar operating license

Pará state government said that a Brazilian court has revoked locally owned pig iron producer Cosipar's operating license. Cosipar was operating with an extension to its license that was due to last until October 2009.

According to the Pará government, Cosipar has been accused by the Pará state environment ministry of irregularly discharging liquids into the Tocantins and Itacaiúnas rivers, not complying with commitments to reforest areas and using charcoal of questionable origins.

Cosipar reported that it plans to appeal the decision and that its legal department is reviewing the ruling. The company stressed that over the past three years it has stepped up its reforestation program and planted more than 10,000ha in Pará and Tocantins states.

The pig iron producer also said that it has taken on a policy of using alternative types of coal in its processes, such as coal fines, metallurgical coke or charcoal from its own eucalyptus forests. The company has instated an auditing area in charge of ensuring its charcoal comes from legal, sustainable sources.

Cosipar operates a 450,000 tonne per year pig iron unit in Pará state's Marabá city.