Sao Paulo State’s court has officially authorised Brazil’s largest flat steelmaker, Usiminas, to continue its activities in the port of Cubatao, southern Brazil, Kallanish learns from local reports. The news comes after Cubatao’s mayor, Marcia Rosa, announced the suspension of the company’s licence on 10 December.

"In 2011 the steelmaker agreed to comply with a series of obligations, such as training workers and maintaining jobs in the area," Rosa explains in the official statement.  However, “…Usiminas is not fulfilling its part of the deal, since the company decided to halt part of its production lines and dismiss thousands of workers.”

In response to the decision, Usiminas issued a statement calling on local unions and the municipal government to re-evaluate their actions bearing in mind “…the severity of the current economic scenario and its consequences.”

On 12 December Luciana Castello Chafick Miguel, Judge of the 3rd Court of Cubatao, suspended the injunction and authorised Usiminas to continue the activities in the terminal. According to the judge, “…the abrupt closure of the port terminal would be counterproductive, as it would only result in higher unemployment and the progressive fall of tax revenue.”