28/05/2012 21:54:00

Brazil Public Ministry Seeks Halt At Vale's Onca Puma Nickel Mine

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RIO DE JANEIRO -(Dow Jones)- Brazil's federal public ministry in Para state has filed legal action demanding that operations be halted at Onca Puma, a nickel mine in the northern Brazilian state owned and operated by Vale SA (VALE, VALE5.BR).

The public ministry has filed legal action against Vale, the Para state environmental secretariat and Brazil's national indian institute Funai, calling for suspension of Onca Puma's activities until the local indian communities have been fully compensated for damage caused by the undertaking, the ministry said in a statement Monday.

The ministry is demanding that Vale should pay compensation of at least 1 million Brazilian reais ($505,000) per month to compensate each community affected by the mine's activities over the last two years, it said. The area is inhabited by Xikrin and Kayapo indians.

Vale had no immediate comment Monday.

-By Diana Kinch, Dow Jones Newswires; 55 21 7564 4495; Diana.Kinch@dowjones.com

(END) Dow Jones Newswires

May 28, 2012 16:54 ET (20:54 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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