Brazil halts ThyssenKrupp mill expansion

Brazil’s Rio de Janeiro state ordered ThyssenKrupp to halt its plan to expand its USD 6.5 billion Rio de Janeiro slab mill until work on pollution control systems is complete. The state’s environment secretary, Carlos Minc, announced the work embargo on 11 May 2011. The company has been given one month to cover a pit used to hold hot metal, coal and gases in an emergency. Until the work is complete, the company’s latest project, construction of a third coking-coal unit at its Cia. Siderurgica do Atlantica (CSA) mill in Rio de Janeiro must stop. Pollution from the plant, which began operation last year has resulted in protests from nearby residents and resulted in fines from local environmental authorities. Issues with production have led to emergency emissions of a “silvery” cloud made up of 70% carbon and 30% iron. The mill is designed to produce up to 5 million tns of steel slabs per year using iron ore from Vale SA. ThyssenKrupp owns 73% of CSA while Vale owns the remaining 27%.

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