Brazilian iron ore producer Vale and local steelmaker ArcelorMittal Brazil have reached an environmental agreement with Espirito Santo state authorities and public prosecutors from the state and the Brazilian government, officials said.
The deal, also known as conduct adjustment commitment term (TAC), sets requirements the parties must comply under a specific deal. Espirito Santo’s environmental authority (Iema), the local secretariat of environment and water resources (Seama), and the state’s environmental company (Cetesb) also signed the document.
Under the terms of the TAC, both companies committed to invest in specific measures to enhancing environmental control processes at Vale’s Tubarao industrial and port complex, which is also used by ArcelorMittal Brazil for exports.
The companies agreed to prevent and reduce emissions out of the greater Vitoria area. A specific commission was created to follow-up on the two companies’ compliance of the matter, public prosecutors said. The commission is made up of representatives for the two companies, state as well as public prosecutors.
Espirito Santo’s state governor, Paulo Hartung, said the TAC signed by the two companies is worth BRL 1.8 billion ($440 million).