The government of Minas Gerais state said it had obtained a court injunction forcing steelmaker Companhia Siderurgica Nacional to upgrade safety at a mining dam.
A judge on Thursday ordered CSN, as the company is known, to work on the safety of the Fernandinho dam, or pay a daily fine of 1 million reals ($197,667).
The dam is classified at the second highest level risk for bursting, and local governments were alerted by the national mining regulator about the lack of compliance with safety protocols. The emergency classification means the dam is not at imminent risk but requires attention, including the evacuation of the area around the structure.
A burst could affect water supply to the metropolitan area of Minas Gerais’ state capital, Belo Horizonte.
CSN did not immediately reply to a request for comment.
($1 = 5.0590 reais)
(By Aluisio Alves and Tatiana Bautzer; Editing by Jonathan Oatis)