US Steelmaker’s Supply Chain Again Linked to Brazilian Forced Labor
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US Steelmaker's Supply Chain Again Linked to Brazilian Forced Labor
- Government raids in Brazil have reportedly uncovered alleged modern-day slavery abuses in charcoal camps, impacting the supply chain of a major US steelmaker, nearly two decades after similar issues were first raised.
- One specific raid on May 31, 2025, at the Santa Angela charcoal plant operated by Carajas Siderurgia in Maranhao, Brazil, documented poor sanitation and safety conditions, which meet Brazil's definition of modern-day slavery.
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Recent government inspections in Brazil have once again brought to light allegations of modern-day slavery within charcoal production facilities, affecting the supply chain of a prominent US steel manufacturer. These developments occur almost two decades after the steelmaker initially committed to addressing such issues in its pig iron sourcing from Brazil.
The charcoal produced in these camps is a critical component in manufacturing pig iron, a basic ingredient for steel. Historically, charcoal production in Northern Brazil has been labor-intensive and often takes place in remote areas, leading to difficult working conditions that have included forced labor. Brazil defines slavery not only as forced labor but also includes debt bondage, degrading work conditions, extended hours posing health risks, and any work violating human dignity.
One specific incident cited involved a May 31, 2025, raid by inspectors on the Santa Angela charcoal plant, operated by Carajas Siderurgia in Maranhao, Brazil. A report documented inadequate safety and sanitation, which aligns with Brazil’s legal definition of modern-day slavery. Workers, such as Nedirane dos Santos, reportedly endured long shifts, starting at 3:00 a.m. and ending near 8:00 p.m., in hot, windowless rooms with poor ventilation. While workers at this specific camp were reportedly receiving wages and not physically restrained, the conditions were deemed to fall short of minimal requirements for human dignity.
Further government records, including inspection reports and worker interviews from four other raids since mid-2022, also indicated that five additional suppliers to the US steelmaker were purchasing charcoal from camps where authorities alleged workers faced slavery-like conditions. However, Carajas Siderurgia was the only entity directly accused of exposing its own workers to such conditions.
The issue of forced labor in Brazil’s charcoal industry has been a persistent concern. Since 1995, approximately 2,830 individuals have been found working in slavery-like conditions at charcoal production sites in Brazil. A significant portion of these cases, about 57% between 1995 and 2025, are linked to activities that cause severe environmental degradation, such as charcoal production and cattle ranching. In 2021, there was a 40% increase in workers rescued from charcoal production sites compared to 2020, a rise attributed to higher charcoal prices. Brazil has implemented measures to combat this, including a “dirty list” of employers found to use slave labor, which bars listed companies from public funds and certain bank loans. Efforts have also included partnerships with organizations and the development of tools to detect illegal camps.