The local authorities in Rio de Janeiro have ordered Companhia Siderurgica Nacional (CSN) to stop the construction of the new steel mill in the state, because the company didn’t pay the compensation fee on time for the environmental impact.
CSN had agreed to pay US$ 1.2 million. Based on this, the situation could add to ongoing delays and cost overruns in bringing the mew steel plant on line.
The new plant, which features an electric-arc furnace and a steel rolling mill, will have capacity to produce 500,000 metric tons of long products per year, mainly for the construction industry.
CSN expects to finish the plant in the second half of this year, the total expenditure for this plant is estimated at BRL1.2 billion of which BRL1 billion has already been invested.
