Minas Gerais state prosecutors, MPMG, have recommended this week public consultations for the Sul Americana de Metais (SAM) iron ore project to be “immediately suspended.”
According to the MPMG document, SAM was going to hold public consultations for the project’s environment impact study as well as its environment impact assessment, as part of its licensing phase.
Prosecutors said a Minas Gerais environmental regulator should request that SAM present more information about studies for the project’s impact study and environment impact assessment. Prosecutors said they want to ensure the project won’t affect the communities nearby.
Prosecutors also recommended state environment regulators to not issue a statement or allow the project to be discussed to advance towards a licensing phase.
SAM, a company owned by Chinese holding Honbridge Holdings, aims to produce 27-30 million mt/year of iron ore in a site covering the cities of Grão Mogol, Padre Carvalho, Fruta de Leite, Josenópolis and Salinas, all located in the state of Minas Gerais.
SAM estimated the project to cost $2.1 billion. The project should also include an iron ore open pit, and a slurry pipeline.