By Brazil Stock Guide – Brazil’s Federal Prosecution Office (MPF) has filed criminal charges against Companhia Siderúrgica Nacional (B3: CSNA3) and Harsco Metals Ltda over alleged environmental crimes spanning more than four decades in the steelmaking hub of Volta Redonda, Rio de Janeiro state.
Prosecutors claim the companies have maintained massive slag deposits along the Paraíba do Sul River in a permanent-preservation area, causing soil, air, and water pollution and posing health risks to nearby residents. The estimated environmental and collective moral damage exceeds R$430 million (US$77 million).
The complaint, signed by federal prosecutor Jairo da Silva on September 30, 2025, describes what it calls a “permanent crime” dating back to the 1970s, when Companhia Siderúrgica Nacional began storing steelmaking waste in an open-air yard in the Volta Grande II district. The site now holds over 5 million tons of slag piled up to 30 meters high, without containment structures. Part of the area overlaps the Médio Paraíba Wildlife Refuge (REVISMEP) and the federally protected riparian zone of the Paraíba do Sul River.
According to the MPF, CSN and Harsco “deliberately and continuously prioritized profit over environmental law.” Federal Police forensic reports and studies by Rio de Janeiro’s state environment agency (INEA) found traces of heavy metals — including cadmium, aluminum, iron, and manganese — and fine particulate dust reaching nearby neighborhoods. Prosecutors argue the waste piles remain exposed and have prevented natural vegetation from regenerating.
The MPF rejected any possibility of a Non-Prosecution Agreement (ANPP), arguing that the case is not an isolated event but a pattern of corporate disregard for environmental norms. “The slag piles are an aggressive and constant presence in Volta Redonda’s landscape — a public symbol of environmental impunity that the courts cannot ignore,” prosecutor Silva wrote in the filing to the 2nd Federal Court.
The office also noted that ongoing negotiations for a civil settlement (TAC) do not preclude criminal action, citing the constitutional independence between civil and criminal proceedings. The agency requested that the court fix a minimum compensation value for environmental damage. If accepted, the complaint would open a federal criminal case against both companies.
In a statement, CSN said the filing was “unexpected” and “devoid of technical and legal grounds,” noting that independent studies confirm the yard’s safety and stability. The company said the site is a steel by-product processing facility, not a landfill, and reaffirmed its commitment to environmental law and transparency.
Harsco said it was surprised by the complaint filed by Brazil’s Public Prosecutor’s Office, noting that the investigation has been ongoing since 2018 and that the company has been negotiating in good faith a settlement in a related civil public action for about four years. The company said the alleged environmental damage “has not been proven and remains under expert analysis.”
Harsco added that it ceased operations in Volta Redonda in August 2024 and reiterated its position that it “provides environmental solutions and contributes to the proper disposal of steelmaking byproducts,” expressing confidence in a fair resolution of the case.
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