Beruflich Dokumente
Kultur Dokumente
in the Amazon
How steel production is throwing
the forest into the furnace
Updated Edition
February 2013
1. Introduction 03 For more information contact:
pressdesk.int@greenpeace.org
2. From forest to charcoal 05
Written by:
3. Devastating development in the north- Greenpeace International
eastern Amazon 11
Front cover image
4. Amazon destruction in your garage 19 Rodrigo Balia / Greenpeace
Second Edition
Published December 2012 by
Endnotes 28 Greenpeace International
Ottho Heldringstraat 5
1066 AZ Amsterdam
The Netherlands
. Tel: +31 20 7182000
greenpeace.org
MARIZILDA CRUPPE / GREENPEACE
2 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
section one
#1
Introduction
Wood charcoal is burning up more than whats The worlds largest iron mine, under the control of Vale SA,
for dinner at backyard barbeques. In Brazil the the worlds second largest mining company3, is centrally
located in the region. Since the late 1980s, this iron ore
worlds largest consumer of wood charcoal1
deposit has attracted the development of 43 pig iron
turning iron ore dirt into steel requires massive blast furnaces operated by 18 companies.4 These blast
amounts of energy, and for the rainforest in the furnaces - fuelled by charcoal - use substantial amounts
northeastern Amazon this energy has come at of raw iron ore from this mine that is processed into pig
a heavy price. Wood charcoal made from the iron. The Brazilian government has invested heavily in
charred remnants of the rainforest is used to the regions pig iron, mining sector and infrastructure
through the Programa Grande Carajs (The Great Carajas
heat pig iron blast furnaces that provide raw
Programme). Financing for this project came mostly from
material for the steel mills and cast iron foundries. the World Bank, the European Economic Community
Steel is found everywhere in cars, appliances, (predecessor to the European Union) and the Japanese
construction, and airplanes. government.5 The pig iron industry and its charcoal
Two years of Greenpeace investigations, summarised in this suppliers have brought severe negative impacts to the
report, reveal that end users including major global car region. Aside from intense forest destruction, the charcoal
manufacturers indirectly or directly source pig iron whose industry has a notorious track record for slave labour.
production is fuelled by forest destruction and slave labour in Furthermore, the rush to seize the forest for both timber
their supply chains. On notice for many years due to media and charcoal has fuelled violence and land conflicts.
and industry articles, these companies continue to disregard Almost all of the pig iron connected to the regions devastation
evidence that some of their suppliers are breaking Brazilian is exported to the US and used as a primary ingredient for
labour and environmental laws, and wreaking havoc in the making steel or cast iron. Despite attention to the problem
Amazon. over the years, little has been done and household consumer
Few places in the Amazon have experienced as much forest products in the US can still be traced back to illegalities and
destruction as the Carajs region (made up of portions of forest destruction in the Amazon. Addressing these problems
Par, Maranho and Tocantins states). Like other sites of will require action on behalf of both the Brazilian government
rainforest devastation in Brazil, most of the denuded land and the American steel and cast iron industries and their major
is today occupied by soy farms and cattle pastures. What consumers, such as Ford, General Motors, BMW, Mercedes,
makes this region different, however, is the fact that logging Nissan, and John Deere.
and charcoal production have served as principal drivers
of forest loss in the region.2 Over the years, thousands of
remote charcoal camps, spread throughout the region
have pillaged huge areas of natural rainforest to smoulder
into wood charcoal to fuel the blast furnaces of the regions
production of pig iron, a primary ingredient for steel.
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 3
section two
one
03
MARIZILDA CRUPPE / GREENPEACE
4 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
image Illegal charcoal section two
kilns in the municipality of
Tucuru, Par.
#2
From forest to
charcoal
Like something out of a film from a time long Although mostly associated with barbecues, the vast
past, dozens of smoky charcoal camps majority of charcoal goes into this energy intensive
process. The Brazilian governments 2007 National Plan on
are spread throughout remote areas in the
Climate Change officially recognises pig iron as a driver of
northeastern Amazon. These camps smoulder greenhouse gas emissions from deforestation.9
rainforest into charcoal, which is then burnt to
make pig iron in industrial blast furnaces. Forest Fuelling pig iron production with charcoal
is cut and loaded into dozens of 2.5 metre-high According to IPIA, the cost of the fuel makes up 35% of the
beehive-like ovens in these charcoal camps. cost of the pig iron depending on the market price10, and
the pig iron blast furnaces draw upon the cheapest fuel
Often illegal, these camps are built in a matter
possible. Charcoal camps in the region often rely on labour
of days, located in difficult to access areas and, conditions akin to slavery or illegal wood to lower expenses
if shut down by authorities, frequently spring up and increase profit.11 Illegal wood provides an incredibly
again in another location. They are built next to lucrative opportunity for charcoal makers because illegal
wood sources, including illegally in protected material has been estimated to cost roughly one-tenth of
areas and indigenous lands.6 plantation-grown timber.12
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 5
section two
6 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
section two
products. Sometimes
Often, these camps are clandestine,
there are additional or
operating without licence inside protected
fewer intermediaries,
and community lands, or on indigenous
and sometimes
land. Workers are often living in slave-like
manufacturers buy
conditions.
the pig iron directly
and use within their
own facilities.
Steel mills buy the Mineral brokers import pig iron from the
Pig iron is imported
pig iron to mix with Amazon. Broker National Material Trading
by Cargills Ferrous
scrap metal to make sells its pig iron to cast iron foundries
division, one of
steel. operated by John Deere.
the worlds largest
mineral traders.
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 7
section two
Cheap wood fuel, deeply The origin of the wood is difficult to pinpoint. The sources
of wood are becoming more diverse over time and the
discounted through forest supply chain for wood for the charcoal ovens is complex.
destruction The wood for charcoal in the region traditionally came
directly from illegal logging or waste from sawmills, but in
Pig irons insatiable appetite for the hard stuff
recent years more charcoal camps have begun in small
To make pig iron requires an enormous amount of wood numbers to source alternatives such as plantation timber
charcoal and consequentially wood. The production of or coconut shells.33
1 ton of pig iron requires the burning of 2.2 metres of
charcoal.25 This volume of charcoal requires 4.4 cubic However, native forest and sawmill waste together still
metres of wood twice the volume from the Amazon dwarf these alternatives as the primary supply for wood
Biome.26 The most recent annual peak production of the charcoal today.34 Charcoal camps still rely on illegal wood
north-eastern Amazons pig iron, in 2007, yielded 3.59m for a sizeable portion of their wood source as it is cheaper.35
metric tons of pig iron.27 Applying the same ratio, the Timber sources for charcoal ovens:
regions production of that year required approximately Wood that is legal includes any source with an
15.8m cubic metres of tropical wood.28,29 A third of the approved permit, such as plantation-grown timber,
wood going into the charcoal ovens was estimated to native forest logging with government permits, and legal
come from illegal wood sources according to a 2006 sawmill waste.
academic study.30
Illegal wood includes illegally-cut wood from protected
It is difficult to calculate just how big of a price the Amazon conservation areas and reserves, indigenous lands, wood
has already paid for the pig iron industry. Unlike other drivers without permit or forest management credits.
of forest destruction, such as cattle or soy, it is difficult to
measure the amount of pig iron deforestation based on Hidden in waste wood credits State governments
present land use all of the wood that is used for charcoal award sawmills with inflated amount of credits for legal
is burned, and the forest is often replaced by pasture or soy wood waste. For every cubic metre of sawn timber from
plantations. the log, an additional cubic metre is awarded for the waste
of the cut log at the sawmill.36 This generous ratio allows
If the wood used was compared to an area of deforestation sawmills ample space to hide illegal wood waste within the
the scale would be impressively large. A recent report by legal wood waste, which is then sold to charcoal camps.
the Brazilian environmental protection agency, Ibama,
calculated the wood charcoal consumption of one medium- Document fraud includes sawmill waste or other timber
sized pig iron company, Siderrgica do Par (Sidepar), was that is fraudulently presented as legal (see next section).
responsible, over the last 5 years, for the equivalent of at
least 37,000 hectares of illegal deforestation, or 142 square
miles.31 This example only looks at two of the regions 43 pig
iron blast furnaces.32
8 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
section two
How charcoal producers and their clients cook the 5. Using fraudulent forest management credit
books timber is classified as legal if it is accompanied with
Greenpeaces investigation identified eight categories of forest management credits. An approved forest
frauds commonly occurring in the industry. These frauds management plan awards the property owner a
were also confirmed by a variety of government reports certain amount of credit based on the expected yield
and investigations.37 of the timber harvest. With large amounts of illegal
wood in the region, these credits have become a hot
1. Operating without obtaining a licence Charcoal
commodity and are often sold to legitimise illegal
camps operate clandestinely. These operations are
wood. For example, a property owner obtained forest
likely to be involved in illegal logging and deforestation,
management credits for his land, even though there
slavery, or invasions in indigenous lands.
were no forests on his property. He then used his
2. Operating with a suspended licence Charcoal credits to legalise illegal timber from another property.
camp licences are suspended due to unpaid fines,
6. Phantom companies Pig iron producers buy from a
environmental or labour violations, but continue
licensed charcoal camp, but the camp only exists on
production. Because they are now operating illegally, they
paper and does not exist physically. That means the
arent on the radar of the government and are therefore
source of the timber is unknown.
not monitored for environmental or labour practices.
7. Empresas fachadas or business fronts licensed
3. Illegal transportation Illegal charcoal producers
charcoal camps that sell charcoal they dont produce.
transport their product on trucks using the licence
These licensed camps purchase charcoal from
plate of another vehicle in order to avoid a possible link
unlicensed or illegal operations and sell the charcoal
between the shipment and the illegal operation.
as their own. In this sense, the camp operates as a
4. False delivery entries when delivered to the pig iron charcoal broker as well as a charcoal producer.
company, a shipment of illegal or unlicensed charcoal is
8. Impossible balances Occurs when the output of the
entered into the companys official record as a shipment
pig iron producer or charcoal camp does not match up
connected with a licensed charcoal company.
physically with the amount of charcoal or wood that the
operation puts in its company records.
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 9
section three
03
RODRIGO BALIA / GREENPEACE
10 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
image Ponta da Madeira section three
port, where iron ore is
exported.
#3
Devastating development in
the north-eastern Amazon
Climate of fear and violence
Illicit logging activity and pressure on the forest I live by the forest and will do anything to protect it. For this
have lead to land disputes and violence. Forest- I live knowing that I can be shot in the head at any given
dependent peoples, who live in extractive moment. Because I expose the loggers, I expose the
reserves and rely on forest-friendly economic charcoal makers, and for this they think that I shouldnt exist.
activities such as the extraction of rubber and The same thing they did in Acre [State] with Chico Mendes,
brazil nuts, have seen their reserves invaded by they want to do to me, the same they did with Sister
Dorothy, they want to do to me. I could be here today,
loggers who intimidate these forest communities
speaking with you, but in a month you could hear news
with violence.38 that I have disappeared.
Community leaders like Jos (Z) Cludio Ribeiro da Silva
and his wife Maria do Esprito Santo da Silva, known for
Jos Cludio Ribeiro da Silva, TEDx Amazonia 2010
bravely standing up to illegal loggers, have been murdered
in the region, and other community leaders regularly
receive death threats. Prior to his murder, Greenpeace Rosina Diniz, from Conselho Indigenista Missionrio do
interviewed Z Claudio about the regions deforestation Maranho, explains how the growth of the pig iron industry
connected to the pig iron industry. He told us that the in the Aw-Guaja region and consequential pressure on the
invasions of loggers into their community coincided with territory has impacted the traditional people there:
high charcoal prices in 2007, when there was a charcoal
shortage serious enough to be reported by steel industry
journals in the US.39
Z Claudios home, the Praia Alta Piranheira reserve, was Everything began with the notice of the Great Carajas
established in 1997 and had 85% natural forest cover. Programme in the region, from there began a rush to
Today, following years of invasions by illegal loggers, occupy the lands. With the grabbing of these areas, there
only 20% remains and much of it is fragmented.40 Z began to appear cases of Aw groups being threatened
Claudio was very outspoken about the destruction of and exterminated. In short time, they were being expelled
the reserve for timber and charcoal production, received from places where they always lived.
repeated death threats and, tragically, predicted his own Even after the indigenous lands were recognised by the
assassination during a lecture he gave at TEDx Amazon.41 government, the pressure on these lands for the resources
never stopped. Even today, the indigenous people
continue to suffer the impact from the regions pig iron
production and the devastation of their territory continues.
The Aw continue to be victims of the logging trade,
which represents their largest threat. When you are in their
villages you can hear the chainsaws at work. Its not news
that the wood that feeds the charcoal ovens comes from
these indigenous lands.
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 11
section three
Forest devastation in the north- These maps illustrate how, in this region of the Amazon,
few native forests are left standing except for fragments
eastern Amazon an overview in protected areas or indigenous lands belonging to
These maps show the rapid destruction of the regions natural traditional forest people such as the Aw. With other
forests since 1986, shortly before the pig iron companies were sources of timber already gone, these forest fragments
established. This trend coincides with a steady expansion of are under intense pressure from illegal loggers, charcoal
pig iron production in Maranho and Par.42 camps and farmers. Unless action is taken, what forest is
left in the region will soon be gone.
12 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
section three
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 13
section three
Impact on protected lands: The All of these protected areas have experienced
threatened Gurupi Mosaic extensive invasions from illegal loggers. Up until
2011, almost one-third of the Alto Rio Guam
With few forests left standing, illegal loggers
and Aw territory has been destroyed by illegal
and illegal settlers have targeted a mosaic of
logging and subsequent land use changes.46
adjacent protected areas. These lands include
Here, loggers flagrantly violate the law and bring
the legally protected indigenous lands Aw, Alto
in multiple trucks for hauling away timber and
often enter indigenous lands well armed.47
Gurupi Biological Reserve.
14 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
section three
15
section three
Indigenous groups in crisis: Not only has this devastation impacted the ability of the
The case of the Aw-Guaj Aw-Guaj to hunt for food, but the invasions into the
The Aw-Guaj is a population, comprised of between Aw-Guaj territory have led to violence.60 Just this year, a
350 and 400 individuals53, and the group is one of the Brazilian NGO specialising in indigenous peoples matters
nomadic hunter-gatherer groups in Brazil that knowingly reported incidents of loggers running over Aw-Guaj living
live in voluntary isolation.54 The Aw-Guaj population quarters with tractors, and loggers possibly murdering an
is distributed between the indigenous lands Aw, Alto Aw-Guaj child.61
The NGO Survival International has also recently reported
the Araribia Indigenous Lands to the south in Maranho another case of violence against the Aw: loggers
State.55,56 The history of contact with the Aw is very attacked, tied up, blindfolded, and then attempted to
recent, dating back only about 40 years.57 As hunter- decapitate an Aw man, and fired their guns at the mans
gatherers, the Aw-Guaj are completely reliant on the wife when she ran for help.62
forest for survival.
The Aw territory in the indigenous lands of Araribia is
The Aw-Guajs survival is under threat from ranchers and nearby a logging centre, the town of Buriticupu. In 2009,
loggers.58 Up to 30% of the forest that the Aw-Guaj rely this town was home to 35 sawmills. An Ibama investigation
on has been degraded.59 found only two of these mills had legal operating licences.
Ibama shut the mills down, but as soon as federal
authorities left, the sawmills returned to normal operation.63
16 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
section three
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 17
section four
03
RODRIGO BALIA / GREENPEACE
18 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
image Charcoal camps in section four
Par state
#4
Amazon destruction in
your garage
How US car manufacturing is Metal brokers such as the Ferrous Division of Minnesota-
based Cargill, Illinois-based National Material Trading,
contributing to the devastation in and Pennsylvania-based Environmental Materials
the Amazon Corporation also import pig iron from Viena.75 National
Charcoal production with widespread illegalities Material Trading supplies pig iron to clients like Waupuca
and social and environmental consequences is Iron Foundry76 in addition to an Iowa iron foundry operated
by John Deere77, the worlds largest producer of
fuelling the production of pig iron exported, by
construction, forestry and agricultural equipment.78
and large, to steel mills and cast iron foundries
Car companies and others wash their hands of
in the US. Over the last few years, 80-90% of
responsibility
the regions pig iron that was exported went to
The illicit activities surrounding pig irons production, forest
the US.72 Greenpeaces investigation found that
destruction and slavery, and their connection to US auto
a Columbus, Mississippi steel mill, operated by manufacturing, were largely exposed in the US in a 2006
Russian steel giant Severstal, imports pig iron from Bloomberg Markets story on steel.79 Although there was
Brazilian producers Viena and Sidepar73. an immediate reaction from companies like Ford, who cut
This mill produces steel for major automakers business ties for a short period with the pig iron companies
such as Ford, General Motors, BMW, Mercedes in Brazil80, over five years later very little has actually been
done to address the problem. Some companies, such
and Nissan.74
as Ford and General Motors, have spoken about the
Greenpeaces research found Viena and Sidepar fuelling issue of slavery to the press as recently as 2011.81 Some
their foundries with illegal charcoal connected to the companies have vague policies aiming to address slavery,
regions pandemic illegalities including slavery, illegal logging but with no functional mechanisms to monitor progress.
and deforestation, and invasions into indigenous lands. No companies have publically presented efforts to combat
illegalities related to forest loss in their supply chains.
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 19
section four
How automakers tainted pig iron In 2011, Viena also bought charcoal this past year from
Serraria Agropal in the municipality of Dom Eliseu in
suppliers throw forests into the Par State.92 Even though Serraria Agropal had legal
furnace permits to sell charcoal, it was also buying a significant
amount of illegal charcoal from charcoal camps Carvoaria
Tailndia Ltda and EJF de Lima.93 EJF de Lima is a
phantom charcoal company that only exists on paper, so
the charcoal sold by Serraria Agropal was from unknown
sources.94
sells legal charcoal transportation licences to illegal
operators in order for them to legally truck their product.95
By doing business with these two companies, Serraria
Agropal was able to launder 11,700 cubic metres of
Pig iron producer Viena (Maranho State), the largest illegal charcoal.96 This amount could fill 234 trucks97 and
and oldest operation in the region is an example of provides enough fuel to produce 5,318 tons of pig iron.98
the impunity rife in the industry. This single illegal charcoal example in an industry rife
The regions largest and oldest pig iron operation is Viena with such impunity - used a quantity of wood equal to 335
82
Siderrgica do Maranho (Viena). The company, hectares of Amazon rainforest, more than a square mile, as
calculated by Ibama.99
and is affiliated with two other large pig iron companies, The scale of these illegal operations is limitless. Serraria
Compania Vale do Pindare (Pindare) and Siderrgica Agropal also bought 65 trucks worth of charcoal from RL
do Maranho, (Simasa).83 The three companies have an Indstria e Comrcio de Carvo LTDA, another legal
annual production capacity of 1.5m tons of pig iron, and company who had used this paperwork to launder twice
Viena has at least 80% of its product going to the US.84 as much illegal charcoal.100 RL Indstria e Comrcio de
Viena continues to do business with slavery and illegal Carvo LTDA was found to have bought 13 truck loads
businesses, and is connected to Amazon destruction. of charcoal from Carvoaria Planalto101, a phantom
company.102 According to Ibama, Carvoaria Planalto
Slave labour laundries vast amounts of illegal charcoal in the region.103
Carvoaria Planalto also sold at least 800 trucks of illegal
One of Vienas major suppliers in Par State, Carvoaria
charcoal to other intermediaries before arriving at Viena
Chapado, from whom Viena bought 197 shipments of
and others foundries.104
charcoal in 201185, was cited for slave labour in December
2011.86 At that time, according to a Brazilian NGO,
High-risk purchases from sources likely operating in
investigators liberated 61 workers from the companys
indigenous lands
camp.87 Before the raid, Carvoaria Chapados operating
licence had already expired, but Viena still purchased at Three of Vienas charcoal sources are J A R Marinho Ind e
least 10 shipments of wood charcoal, totalling a volume of Comrcio and Sebastio Sucupira Sobrinho Indstria
roughly 600 cubic metres.88 from the town of Amarante do Maranho, and J Resende
da Silva from Buriticupu.105 J A R Marinho was found by
Doing business with phantoms Ibama to sell wood illegally.106 Given that the only forests
Viena repeatedly bought directly from Par state charcoal nearby these charcoal operations is Araribia indigenous
camps FR Industrial e Comrcio de Carvo and lands, one can conclude that this legally protected area
TV De Montreuil at a time when neither company had regularly invaded by illegal loggers is the likely source
a valid operating licence.89 FR Industrial e Comrcio of this illegal wood.Viena purchased almost 8000 cubic
de Carvo was also fined by Ibama for violating forest metres of charcoal from these three charcoal camps.107
laws90, and TV De Montreuil was also fined by Ibama for
presenting false information concerning the transport of
timber.91
20 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
section four
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 21
section five
03
22 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
image Eucalyptus section five
plantations on cleared
land owned by Sidepar.
#5
Moving forward:
proceed with caution!
Plantations as the solution: a
Movimento Sem Terra and Comisso Pastoral da Terra,
reason to proceed with caution point to the lack of public input into the expansion of
The pig iron industry in Brazil needs a radical eucalyptus plantations.122 These NGOs also report that the
rapid plantation expansion and accompanying pressure
overhaul. It will need to find a replacement for the
on arable land is on track to displace people in the
native wood it uses for charcoal. Charcoal as a fuel region.123,124 Associated concerns also include pressure
source for pig iron in Brazil is an anomaly 98.5% on water resources, because eucalyptus cultivation is
of companies worldwide use other sources such water-intensive, and these groups report that eucalyptus
as coking coal.120 The predictable solution is to use expansion is diverting water from nearby small farms.125
plantation timber as the raw product. These NGOs describe the monoculture plantations as
green deserts due to the lack of biodiversity and non-
Accordingly, this Amazon region has seen an explosion timber resources the forests offer.126 Intensive pesticide
of eucalyptus plantation development.121 Unfortunately, use and the threat of contamination of water resources and
this rapid growth of eucalyptus plantations could present neighbouring farmland is also an ongoing concern for local
serious consequences to local communities. communities.127
For at least 15 years, pig iron production was fed with only
native forest. The trend now is the eucalyptus plantations
that are a step backwards for the distribution of lands
and small scale agriculture. The socio-environmental
impacts are enormous. Rural settlements are becoming
encroached by eucalyptus plantations that drain water
sources and poison the soil with their heavy use of
pesticides.
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 23
section five
24 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
section five
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 25
section six
03
MARIZILDA CRUPPE / GREENPEACE
26 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
image Silhouette of a tree section six
and an illegal charcoal kiln
in Tucuru, Par.
#6
Conclusions and
demands
The harsh reality of the charcoal and pig Greenpeace demands:
iron industry in the north-eastern Amazon is
reminiscent of Brazils past slavery, forest Automakers, constrution firms and other heavy users
of steel:
destruction and the wiping out of indigenous
1. Identify whether your suppliers use pig iron
communities.
processed with charcoal and demand that those
Despite endemic slavery and environmental destruction suppliers, both direct and indirect, put in place
within the regions pig iron sector, the industry enjoys verifiable, monitorable and reportable means of
robust sales abroad, primarily to the US. The lack of demonstrating their supply chain is free of forest
serious attention from the US market, in the face of readily destruction and slavery.
available reports, has not helped control the impunity
2. Require eucalyptus plantations that fuel pig iron
and illegality rife in the industry and fuelling the regions
production in your supply chain to have adequate
devastation. The Brazilian government has allowed forest
environmental and social safeguards, including but
degradation in the region to continue to the point that the
not limited to a zero deforestation policy, and free,
regions illegal loggers and illicit charcoal companies are
prior and informed consent of local communities.
on track to destroy the remaining forest in the region and
the ability of the regions indigenous peoples to live off their
Brazilian federal and state governments:
forested lands.
1. Take immediate action to address the environmental
Furthermore, while this report was being written, the and social illegalities rife in the charcoal and pig iron
Brazilian Congress had recently approved legislation to industries, including a taskforce to investigate and
change the Brazilian Forest Code.143 In the opinion of not prosecute the invasions into the Aw and other
only environmentalists, but also scientists and forest policy indigenous lands
experts, these Forest Code changes will weaken forest
protection and grant amnesty to those who committed 2. Provide the Federal Public Prosecutor office proper
environmental crimes in the past.144 Furthermore, the capacity to monitor the progress of the legal
governments power to combat environmental crimes will settlements concerning the regions pig iron companies.
be reduced. The new Forest Code will stimulate impunity 3. Do not approve changes to the Forest Code, reject
and permit an increase in deforestation that will drive Lei Complementar 140, and do not allow other legislative
further forest loss, impact on forest-dwelling people, and changes that undermine environmental protection or the
fuel social conflict. ability of federal agencies to enforce the law.
The ongoing violence and social abuse through the role of 4. Do not approve any policies that weaken protection
slave labour in the industry and the social impact of plantations for indigenous people or facilitate the redefinition
illustrate a clear lack of governance and participatory land-use and reduction of legally protected indigenous lands.
planning in the region. The picture painted in the north-eastern 5. Ensure that eucalyptus plantations (including future
Amazon, over the past few decades, undermines Brazils expansion plans) fuelling the pig iron industry have
claims of sustainability and modernity. adequate environmental and social safeguards.
6. Support research efforts that improve the efficiency
of wood charcoal as fuel or reduce wood charcoals
inherent socio-environmental risks to local
communities.
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 27
endnotes
Endnotes
1 Rosillo-Calle F et al (1996). The charcoal dilemma: finding 14 Costa PTM (2009). Fighting forced labour: The example
fo Brazil. International Labour Office, International Labour
Organization. Geneva.
2 Uhlig A, Goldemberg J & Coelho ST (2008). O uso de carvo http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---
vegetal na indstria siderrgica brasileira e o impacto sobre as declaration/documents/publication/wcms_111297.pdf
2 September 2008, pp. 67-85. 15 United States Department of Labor (2011). List of goods
produced by child labor or forced labor. 2011.
3 http://www.dol.gov/ilab/programs/ocft/PDF/2011TVPRA.pdf
http://www.vale.com/pt-br/conheca-a-vale/paginas/default.aspx
16 Ministrio do Trabalho e do Emprego (2011) op cit.
4 Assis WS & Carneiro MD (2011). O uso do carvo vegetal como
fonte de energia no Par - o Parque Siderrgico de Carajs: 17
controvrsias sociais, ambientais e econmicas. In: Porro R, Toni ambiente.
F (Org.). Energia na Amaznia. Belm: Iniciativa Amaznica, 2011. http://www.escravonempensar.org.br/upfilesfolder/materiais/
arquivos/tec_meioambiente_web01.pdf
5
18 Ministrio do Trabalho e do Emprego (2010). Quadro das
2010 . http://portal.mte.gov.br/data/files/8A7C816A308E140C013099A
Hall AL (1991). Amaznia: desenvolvimento para quem? A320A62A2/est_resultado_quadro_trabescravo2010.pdf
Desmatamento e conflito social no Programa Grande Carajs. Rio
de Janeiro: Jorge Zahar, 1991. 19 Bales K (1999). Brazil - Life on Edge. In: Disposable People:
New Slavery in the Global Economy, University of California Press.
6 Indigenous Lands as used in this report refers to Terras
Indgenas, a Brazilian legal classification for legally protected 20 Ministrio do Trabalho e Emprego (2009). Relatrio de
lands that are demarcated based on the presence of indigenous
populations. For more background, see: Hutchison M et al 21 Kato M et al (2005) op cit.
(2004). Demarcation and registration of indigenous lands in Brazil.
University of New Brunswick, November 2004. 22 Ibid.
13 Shahinian G (2010). Report of the Special Rapporteur 32 Assis WS & Carneiro MD (2011) op cit.
on contemporary forms of slavery, including its causes and
33 Ibid.
consequences Mission to Brazil. Human Rights Council, United
Nations. New York. 34 Ibid.
http://www.ilo.org/sapfl/Informationresources/
NonILOpublications/WCMS_144676/lang--en/index.htm 35 Uhlig A, Goldemberg J & Coelho ST (2008) op cit.
28 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
endnotes
36 57
http://www.sema.pa.gov.br/interna.php?idconteudocoluna=2296 58
&idcoluna=14&titulo_conteudocoluna=23
2009
37 Ibama (2011) op cit.
59 Instituto Nacional de Pesquisas Espaciais (2012b) op cit.
38
confirma a existncia de ndios isolados no Maranho. 60
http://www.funai.gov.br/ultimas/noticias/2_semestre_2009/ 61 Santana R (2012). Tratores de madeireiros passaram por cima
dezembro/un2009_10.html do acampamento Aw, destruindo tudo, diz missionria do Cimi.
39 Steel Business Briefing (2007). Charcoal shortage prompts http://www.cimi.org.br/site/pt-br/?system=news&action=read
coke imports in northern Brazil. &id=6047
http://www.steelbb.com/?PageID=157&article_id=28919 62 Survival International (2011). Amazon indian nomad beaten up
40 Silva JCR (2010). Acha que matar rvores assassinato. TEDx by loggers.
Amaznia, Manaus. http://www.survivalinternational.org/news/7714
http://www.tedxamazonia.com.br/tedtalk/ze-claudio 63
41 Ibid. 64 Instituto Nacional de Pesquisas Espaciais (2012a) op cit.
42 Instituto Nacional de Pesquisas Espaciais (2012a). Projeto 65 Instituto Chico Mendes (2011). Rebio do Gurupi - Iventrio da
Prodes. 2 avifauna e mastofauna.
http://www.obt.inpe.br/prodes/index.php http://www.icmbio.gov.br/portal/o-que-fazemos/pesquisa-e-
43 Ibid. monitoramento/projetos-apoiados/2011/286-rebio-do-gurupi-
inventario-da-avifauna-e-mastofauna.html
44 Instituto Nacional de Pesquisas Espaciais (2012b). Projeto
66
http://www.dpi.inpe.br/prodesdigital/prodesuc.php Brasileiros (CPB).
http://www4.icmbio.gov.br/cpb//index.php?id_menu=24&id_
45 Instituto Nacional de Pesquisas Espaciais (2012a) op cit. arq=106
46 Instituto Nacional de Pesquisas Espaciais (2012b) op cit. 67 International Union for the Conservation of Nature (IUCN)
(2012) op cit.
47
68 Instituto Chico Mendes (1998). Rebio do Gurupi.
48 Instituto Nacional de Pesquisas Espaciais (2012b) op cit.
http://www.icmbio.gov.br/portal/biodiversidade/unidades-
49 de-conservacao/biomas-brasileiros/amazonia/unidades-de-
amamentam filhotes da floresta. conservacao-amazonia/1998-rebio-dogurupi.html
http://fantastico.globo.com/Jornalismo/
69 Instituto Nacional de Pesquisas Espaciais (2012b) op cit.
FANT/0,,MUL1640337-15605,00.html
70 Moura WC et al (2011). A Reserva Biolgica do Gurupi como
50 Instituto Nacional de Pesquisas Espaciais (2012b) op cit.
51 International Union for the Conservation of Nature (IUCN)
(2012). Red List of Endangered and Threatened Species - Spatial
71 Instituto Nacional de Pesquisas Espaciais (2012a) op cit.
Data Download.
http://www.iucnredlist.org/technicaldocuments/spatial-data 72 AliceWeb. Data from 2010 and 2011.
http://aliceweb.desenvolvimento.gov.br/
52 Panthera onca. In: International Union for
the Conservation of Nature (IUCN) (2012) op cit. 73 Piers (2012). US Customs data.
http://www.piers.com/
53
74 Confidential documentation, copy held by Greenpeace.
http://www.funai.gov.br/ultimas/noticias/2012/04_
abr/20120430_16.html 75 Piers (2012) op cit.
55 Ibid. 77 Ibid.
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 29
endnotes
100 Confidential documentation, copy held by Greenpeace. 125 Reprter Brasil (2011) op cit.
102 Ibama (2011) op cit. 127 Assis WS & Carneiro MD (2011) op cit.
30 Driving Destruction in the Amazon How steel production is throwing the forest into the furnace
endnotes
128 Interview conducted by Greenpeace in October 2011. Giovanini D (2011). Lei Complementar 140 o prenncio do caos.
O Estado de So Paulo.
129 http://blogs.estadao.com.br/dener-giovanini/lei-complementar-
movimentos e governo. Carta Maior. 140-%E2%80%93-o-prenuncio-do-caos/
http://www.cartamaior.com.br/templates/materiaMostrar.
cfm?materia_id=14427 Observatrio Eco (2011). Entrou em vigor lei que retira poderes do
Ibama. O Eco.
130 http://www.oeco.com.br/noticias/25529-entrou-em-vigor-lei-
siderurgia brasileira. que-retirapoderes-do-ibama
http://www.cop15.gov.br/pt-BR/indexea3c.html?page=noticias/
aa-o-verde-para-a-siderurgia-brasileira 143
http://www.camara.gov.br/proposicoesWeb/fichadetramitacao?i
131 Ibid. dProposicao=17338
132 144 Comit Brasil em Defesa das Florestas e do Desenvolvimento
133 Johnson E (2009). Goodbye to carbon neutral: Getting Sustentvel (2012). Cdigo Florestal e a Cincia: o que nossos
biomass footprints right. Environmental Impact Assessment legisladores ainda precisam saber.
Review, 29(3): p. 165-168. http://www.ipam.org.br/biblioteca/livro/Codigo-Florestal-e-a-
Ciencia-o-que-nossoslegisladores-ainda-precisam-saber/618
134 Greenpeace International (2010). How Sinar Mas is Pulping
the Planet.
http://www.greenpeace.org/international/en/publications/reports/
SinarMas-APP/
135 Ministrio Pblico Federal do Par (2012a), (2012b) & (2012c)
op cit.
136 Ministrio Pblico Federal do Par (2012d). Siderrgicas que
atuam no Par assinam acordo com MPF contra o desmatamento
e o trabalho escravo. 1
http://www.prpa.mpf.gov.br/news/2012/siderurgicas-que-atuam-
no-para-assinam-acordo-com-mpf-contra-o-desmatamento-e-o-
trabalho-escravo
137 Ministrio Pblico Federal do Par (2012a), (2012b) & (2012c)
op cit.
138 Instituto do Carvo Cidado.
http://www.carvaocidadao.org.br/empresa/
139 Ibid.
140 See for example: Greenpeace International (2003). Par:
State of Conflict. 2003.
http://www.greenpeace.org/international/en/publications/reports/
state-of-conflict/
141 Presidncia da Repblica, Casa Civil (2011). Lei
Complementar N 140, de 8 de dezembro de 2011.
http://www.planalto.gov.br/ccivil_03/leis/LCP/Lcp140.htm
142 See also:
Driving Destruction in the Amazon How steel production is throwing the forest into the furnace 31
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