Brazilian chemical maker Braskem last week said it might have to spend another BRL1.2 billion ($231 million) to address geological damage caused by its salt-mining activities in Maceio, in the state of Alagoas. The announcement about the additional spending came after the company agreed with the country’s authorities to conclude two public interest civil actions, one from affected residents and one of a socio-environmental nature.
Braskem’s provision to take care of the damage has totalled BRL9.1 billion ($1.75 billion). This includes BRL900 million ($173 million) to stabilize the cavities, monitor the soil, and repair socio-urbanistic impacts. The company also provisioned BRL300 million ($58 million) to relocate about 9,000 families and around 15,000 properties. The company also said it continued talks with Brazil’s national mining agency to shut wells in the salt mines.
Braskem immediately stopped the salt mining operation in 2019 after Brazilian authorities filed a lawsuit accusing the company of damaging the soil, triggering a minor earthquake, and causing cracks in streets and buildings. The mine shutdown also affected Braskem’s chlor-alkali and ethylene dichloride production facilities in Maceio. After the shutdown, Braskem’s downstream polyvinyl chloride (PVC) production has been entirely reliant on caustic soda and EDC imports.
