(Adds detail, context, share price)
By Jamie McGeever and Alberto Alerigi
BRASILIA/SAO PAULO, Jan 3 (Reuters) - Brazil petrochemical producer Braskem SA has agreed to a 2.7 billion reais ($667 million) settlement with federal and state authorities in the northeastern state of Alagoas to cover damage caused by a mining project in the area.
According to a securities filing on Friday, 1.7 billion reais is for the financial compensation and relocation of some 17,000 people in the state capital Maceio, and 1 billion reais will be used to close the company’s rock salt wells in the city.
Investors cheered the news, pushing Braskem shares up more than 1% in early trading while the broader Bovespa index of leading Brazilian shares was down around 1%.
Prosecutors had alleged that the mine had caused serious damage to real estate in the city and cracks in the ground, which was backed up by a report by the Brazilian geological service in May. Braskem disputed this.
When Braskem proposed to the National Mining Agency (ANM) in November the steps it would take to close the Maceio salt wells, it estimated that around 400 buildings and 1,500 people would be affected, while the city of Maceio’s estimates were more than 9,600 properties and over 40,000 people.
In the securities filing on Friday, Braskem also said that the authorities accepted its request to free up 3.7 billion reais that had been frozen since June.
Shares in Braskem rose as much as 1.5% in early trading, on relief that the settlement was not as severe as some analysts had previously expected.
$1 = 4.06 reais Reporting by Jamie McGeever and Alberto Alerigi; Editing by Alex Richardson and Nick Zieminski
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January 03, 2020 at 08:34PM
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UPDATE 1-Brazil's Braskem takes 2.7 bln reais charge for salt mining project - Reuters
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