By Brazil Stock Guide – Brazil’s Attorney General’s Office (AGU) confirmed a R$75 million ($15 million) fine against Vetorial Siderurgia SA, a steel producer in Mato Grosso do Sul, for using illegal charcoal sourced from native forests. The ruling follows the Rastro Negro Operation, a major federal probe conducted by Ibama, Brazil’s environmental agency, in the mid-2000s.
The initial penalty, issued on June 18, 2008, amounted to R$22.16 million but rose to R$75 million with inflation adjustments. The case marks one of the most significant actions against environmental crimes in Brazil’s industrial sector.
Federal prosecutor Priscila Alves Rodrigues, head of judicial recovery at the AGU’s 3rd Regional Office, said the ruling strengthens Brazil’s legal tools to deter environmental fraud. “This decision represents an important step against environmental crimes and helps curb illegal activities by forest registration system fraudsters,” she said.
The Rastro Negro investigation revealed a vast network supplying charcoal made from illegally harvested wood to steelmakers across Brazil’s Midwest and Southeast. Dozens of companies and suppliers were fined for sourcing material from unauthorized deforestation areas.
Vetorial Siderurgia SA (private) did not comment on the ruling, according to UOL.