A Brazilian court has provisionally suspended Vale's acquisition of Ferrous Resources due to environmental concerns, according to a court document obtained on Thursday by SteelOrbis.
A court within Brazil’s Federal District has accepted an injunction request filed by a local policymaker to suspend the acquisition of Ferrous Resources by Vale. The lawsuit also demanded Vale to pay indemnities to the Brumadinho victims and rebuild the cities affected by Vale’s dam bursts.
The judge provisionally suspended the deal and ordered Vale to present, in 30 days, its “environmental compliance” documents, based on international standards.
“If in 30 days Vale doesn’t present documents showing it’s organizing the implementation of its environmental compliance, based on international standards, or that it’s contracting a company for such a specific goal, the acquisition will be annulled,” the court decision said.
Brazilian anti-trust authority, Cade, had approved earlier this year, with no restrictions, the $550 million acquisition of Ferrous Resources by Vale.