A US$2.1 billion iron mining project in Brazil, controlled by Geely Technology's subsidiary Sul Americana de Metais (SAM), faces new delays in the licensing process.

The Federal Prosecution Service (MPF) obtained two decisions requiring Free, Prior and Informed Consultation (FPIC) with affected traditional geraizeira communities as a condition for any environmental license. The rulings cite ILO Convention No. 169, making the consultation indispensable for the validity of the licensing process.

The Block 8 project in Minas Gerais is designed to produce 27.5 million tons per year and includes a tailings dam and a 482km slurry pipeline. 

SAM has spent about ten years seeking the environmental license, with repeated delays largely due to concerns over tailings disposal following Brazil's 2015 and 2019 dam disasters.