Brazil: mining company agrees to compensation for 17.000 relocations in a capital city

Brazilian petrochemical producer Braskem SA has agreed to a 2.7 billion reais (US$ 667 million) settlement with federal and state authorities in the northeastern state of Alagoas to cover damage caused by a salt mining project there.

Preferred shares in the company surged as much as 8% on the news, to a five-month high and on track for their biggest one-day gain since May 20, as investors breathed a sigh of relief that the amount of damages to be paid was not higher.

The rise goes some way to reversing losses of 35% suffered by the stock last year.

According to a securities filing on Friday, 1.7 billion reais is for financial compensation and relocation of some 17,000 people in the state capital Maceio, while 1 billion reais will be used to close the company’s rock salt wells in the city.

To read more:

Leave a Reply