STXNEWS LATAM-Brazil's CSN faces environmental fine over 2010 oil spill

Wed Dec 19, 2012 5:22am EST

Brazil's Rio de Janeiro state environment agency Inea plans to announce a fine to local steelmaking group Cia Siderúrgica Nacional SA for failing to comply with terms of an accord to clean up an oil spill in 2010, the agency said on its website late on Tuesday. The accord was signed between the company, known as CSN, and Inea in the wake of a massive oil spill in the Paraíba do Sul river, the agency added.

In a report, Deutsche Bank Securities analyst Rodrigo Barros said that "will wait for further information on this fine and the possibilities of a new agreement before making any adjustment to our CSN's forecast and price target." Currently Deutsche Bank has a "hold" recommendation on U.S.-traded shares of CSN, with a 12-month price target of $6 a piece.

Calls made to a CSN spokesman in São Paulo were not immediately answered.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.