Brazil's mining giant Companhia Vale do Rio Doce (CVRD) announced Wednesday it will stop supplying iron ore to pig iron producers that do not comply with the country's environmental or labor legislation, according to a statement.
The first suspensions will be applied to Companhia Siderurgica do Para (Cosipar) and Usina Siderurgica de Maraba (Usimar), both headquartered in the state of Para, in the Amazon rainforest region, the company said.
CVRD said that Cosipar and Usimar had been inspected by the Brazilian government's Institute of the Environment (Ibama), which pointed out the companies' "environmental liabilities."
The mining company added that Ibama notified state environmental bodies and public prosecution offices of the liabilities in Para and Maranhao, and it filed a civil lawsuit against the pig iron producers on Aug. 8.
CVRD, the largest iron ore producer in the world, stressed that its clients and suppliers must fulfill environmental and labor requirements determined by the law in force.