BNamericas reported that Brazilian pig iron maker Cosipar is seeking new alternatives to secure iron ore after CVRD halted certain shipments.

A Cosipar spokesperson told BNamericas that CVRD cut off supply of the raw steelmaking material to Cosipar and other pig iron producers Simasa, Fergumar and Usimar on October 25th2 007 but Fergumar secured an injunction a few days later forcing the miner to resume shipments. At the time, CVRD said it would follow the judicial order but planned to appeal the decision.

The Cosipar official said that "We are still negotiating with CVRD to resume our iron ore contract, which should not have been cancelled unilaterally. Despite the supply halt, there hasn't been a stoppage at our pig iron operations in Marabá.”

The Cosipar spokesperson without disclosing company names said that "Besides having stocks, we are seeking sources for iron ore supply while we negotiate with CVRD, in order to not halt our operations.”

CVRD requested in August information and documentation from some pig iron companies to certify that operations were observing environmental and labor legislation. As a result of its analysis of the documents, CVRD halted supply to the four pig iron makers in Maranhão and Pará states.