Insider

Judge delivers setback to victims of Braskem salt mines

A judge from the Federal Court of Alagoas suspended the update of the Civil Defense risk map for the city of Maceió, the capital of the northeastern state of Alagoas, which had increased the area and number of properties affected by the sinking of salt mines dug and exploited by Braskem, Latin America’s largest petrochemical group. 

A new neighborhood had been included in the risk area in December due to the possibility of one of the mines collapsing. In practice, the decision reduces the number of people entitled to compensation from the company, whose abusive salt mining practices have led to Brazil’s largest urban environmental disaster.

Over 60,000 people have been forced to leave their homes and businesses since the first cracks appeared in 2018. In 2019, a study by the Brazilian Geological Service confirmed that abusive salt mining practices were the leading cause of soil instability in the region.

That same year, Braskem ceased its activities and began to closely monitor the closure and stabilization of its 35 mines in the region of the Mundaú lagoon, which was once a fishing hotspot and one of the city’s tourist attractions, while trying to reach an agreement with federal and state prosecutors to compensate the affected populations — as well as the municipality of Maceió. 

A first agreement was reached in early 2020 with the federal and state prosecution offices, as well as the federal and state public defender offices, to compensate the city and affected families. However, the case is far from reaching a conclusion. 

Last year, the company signed a BRL 1.7 billion addendum to the agreement with the city government of Maceió in compensation for land subsidence and was ordered by a local court to pay financial compensation to the northeastern Brazilian state of Alagoas too. 

Furthermore, federal and state prosecutors have tried to expand the risk area and, consequently, the compensation owed by the company.

Braskem has already disbursed BRL 9.2 billion from general provisions, BRL 4.4 billion of which from the compensation program alone.

More than 14,000 properties in five neighborhoods are condemned. Braskem owns 35 salt mines around the region, and its subterranean salt-mining caves are located underneath densely populated areas. One of its mines partially collapsed in December, after weeks of closed monitoring by the authorities. Experts say the soil will take years to settle.

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.

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