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Vale Pipeline May Be Delayed by Suit, Brasil Economico Reports

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Dec. 1 (Bloomberg) -- Vale SA may be forced to suspend construction of a bauxite pipeline in Brazil after federal prosecutors filed a lawsuit seeking compensation for residents affected by the project, Brasil Economico reported.

Prosecutors in Para state say Vale should indemnify 788 families, who are descendants of former slaves, because the pipeline will pass through their land, the Sao Paulo-based newspaper said.

Vale’s press office didn’t immediately return an e-mail from Bloomberg News seeking comment.

To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net.

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net.

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