Cubatao’s mayor, Marcia Rosa, said on Thursday the city will suspend Usiminas’ operating license, as well as the company’s port facility permit due to non-compliance by the steelmaker regarding the terms of an agreement established between the city and the steel producer.
Usiminas had established a conduct adjustment commitment term (TAC) with the city of Cubatao, in which the steelmaker was expected to meet a series of obligations, including qualifying its workers and preserving job positions.
Usiminas opposed Marcia’s announcement immediately, saying the company’s license in Cubatao isn’t suspended and that such decision isn’t up to the city of Cubatao. Usiminas clarified its operating license is expected to expire in 2017.
In addition to the license suspension, the city also announced a halt in the activities of the steelmaker’s port facility in the city due to the company not having the proper occupancy permit.
Usiminas said it received Cubatao’s notice and is implementing all legal procedures in order to revoke the notice’s effects. Usiminas’ port license expires on Friday.
A media report said Usiminas used to operate its port through a provisional permit, which was granted due to the company’s acceptance of the TAC terms. As Usiminas failed to comply with these requirements, the port license, which requires the occupancy permit, will be suspended.