Brazilian prosecutors suspect that Anglo American Plc sold its Amapá iron ore operation in the country in order to avoid paying for environmental damage caused by an accident at the site, Mining.com reported Feb. 1.
Anglo halted shipments from Amapá following a fatal accident at the floating dock on the Amazon River in early 2013. The company sold the asset to Zamin Ferrous Ltd. in a US$136 million deal later in the year.
The Federal Public Prosecutor's Office of Amapá has decided to file a public civil action against Anglo to seek compensation for environmental damage caused by the incident, which killed six people.
The prosecutors in a statement also allege the company is off-loading the assets to escape the consequences.
Earlier, Brazilian Federal Police investigated allegations of corruption involving state government officials and the Legislative Assembly of Amapá in connection with the sale of the assets, according to lawmakers, who also believe a probe into fraud claims should be reopened and Anglo should pay 100 million reais that it owes for environmental damage to the river.
Anglo American told O Globo that the sale process for the disposal of assets to Zamin was initiated in 2012, prior to the accident.
The public prosecutor held Zamin accountable for 60% of all liability for the environmental damage to the river after studies revealed the presence of pollutants in various streams, while Anglo was fined 20 million reais.
Mining operations were suspended at Amapá in February 2015, after Zamin filed for bankruptcy.
As of Feb. 1, US$1 was equivalent to 3.17 Brazilian reais.
