CSN’s US$9.4 billion investment threatened by local government

According to international media reports, São Paulo, Brazil-based steelmaker Companhia Siderúrgica Nacional (CSN) has run into some trouble with one of its mining assets in the rural town of Congonhas, Brazil. The local government of Congonhas announced that they would like to protect its Baroque agriculture and water supply. This move could impact CSN's plans to expand its mining sector and to sell off a portion of those mines in a public offering--which could bring CSN about US$2 billion. The proposed expansion--for a long steel mill and two pellet plants--would allow the company to invest US$9.4 billion into the region. Mining is the most profitable sector for CSN and a ruling against the proposed investment would damage the company immensely.