1 00:00:03,800 --> 00:00:09,319 Speaker 1: From Bloomberg News and iHeartRadio. It's the big take. I'm 2 00:00:09,360 --> 00:00:14,720 Speaker 1: West Gusova today. Aluminum's long, dirty trip from the Amazon 3 00:00:14,920 --> 00:00:27,040 Speaker 1: to the US. The Ford F one fifty pickup truck 4 00:00:27,200 --> 00:00:30,040 Speaker 1: is the best selling vehicle in the US and has 5 00:00:30,120 --> 00:00:33,480 Speaker 1: been for decades, and when the company unveiled the all 6 00:00:33,520 --> 00:00:36,840 Speaker 1: electric version, called the Lightning, it was an immediate hit 7 00:00:36,880 --> 00:00:41,159 Speaker 1: and sold out. One advantage of electric over gasoline powered 8 00:00:41,200 --> 00:00:43,680 Speaker 1: vehicles is, of course, that the motor is cleaner and 9 00:00:43,760 --> 00:00:47,480 Speaker 1: causes less pollution. That's not always the case, though, when 10 00:00:47,479 --> 00:00:50,440 Speaker 1: it comes to other parts on the vehicle. Like all 11 00:00:50,520 --> 00:00:52,840 Speaker 1: cars and trucks, the F one fifty Lightning is made 12 00:00:52,840 --> 00:00:55,880 Speaker 1: with a lot of aluminum, hundreds of pounds of it, 13 00:00:56,240 --> 00:00:59,520 Speaker 1: and some key parts are made with aluminum that would 14 00:00:59,520 --> 00:01:04,400 Speaker 1: be hard to call environmentally friendly. Bloomberg Senior correspondents Sheridan 15 00:01:04,480 --> 00:01:08,760 Speaker 1: Prasso in Washington and Jessica Brice in Sao Paulo, Brazil 16 00:01:09,319 --> 00:01:12,160 Speaker 1: trace some aluminum parts on the F one fifty ev 17 00:01:12,480 --> 00:01:15,560 Speaker 1: back through a complex supply chain to the heart of 18 00:01:15,600 --> 00:01:20,520 Speaker 1: the Amazon. In Brazil, thousands of residents are now suing 19 00:01:20,520 --> 00:01:24,679 Speaker 1: a refiner that operates there. They claim the aluminum industry 20 00:01:24,720 --> 00:01:28,479 Speaker 1: has made their water undrinkable, that it's harmed the Amazon's 21 00:01:28,520 --> 00:01:33,440 Speaker 1: fragile ecosystem, and it's made them sick. Sheridan and Jessica 22 00:01:33,560 --> 00:01:36,520 Speaker 1: are here now to tell us what they found and 23 00:01:36,680 --> 00:01:41,240 Speaker 1: how Ford has responded. Sheridan, what first made you want 24 00:01:41,280 --> 00:01:44,399 Speaker 1: to look into this story? So sometime last year I 25 00:01:44,480 --> 00:01:49,240 Speaker 1: heard about a lawsuit against this company called Norse Hydro. 26 00:01:49,720 --> 00:01:52,320 Speaker 1: It's a Norwegian company. It has offices around the world. 27 00:01:52,360 --> 00:01:57,200 Speaker 1: It has a refinery for alumina in Brazil in the 28 00:01:57,280 --> 00:02:01,840 Speaker 1: Amazon region, and the people who live around it file 29 00:02:01,920 --> 00:02:05,600 Speaker 1: the class action lawsuit. The suit represents eleven thousand people 30 00:02:05,600 --> 00:02:09,720 Speaker 1: who live around the refinery. They are suing the company 31 00:02:09,800 --> 00:02:13,160 Speaker 1: for causing environmental damage and affecting the health of the community. 32 00:02:13,760 --> 00:02:16,079 Speaker 1: That is what they claim in the suit. The company 33 00:02:16,240 --> 00:02:20,200 Speaker 1: denies these claims and says it's operations meet resilient laws 34 00:02:20,240 --> 00:02:24,639 Speaker 1: and environmental requirements. Sheridan, let me ask you, because we're 35 00:02:24,680 --> 00:02:27,000 Speaker 1: going to hear a number of terms here, what is 36 00:02:27,000 --> 00:02:31,880 Speaker 1: the difference between alumina and aluminum? How is aluminum actually mate? 37 00:02:32,240 --> 00:02:35,079 Speaker 1: So what happens is there's a rock in the ground 38 00:02:35,080 --> 00:02:40,560 Speaker 1: called box sit that is red colored, and mining companies 39 00:02:40,600 --> 00:02:42,919 Speaker 1: take it out of the ground, They grind it all 40 00:02:43,000 --> 00:02:46,640 Speaker 1: up into a powder and dry it out and send 41 00:02:46,680 --> 00:02:51,480 Speaker 1: it for processing at an alumina refinery. The refinery turns 42 00:02:51,520 --> 00:02:56,000 Speaker 1: that red box sit into a white powder called alumina. 43 00:02:56,040 --> 00:02:58,520 Speaker 1: It separates the red and leaves just the white. That 44 00:02:58,639 --> 00:03:01,440 Speaker 1: white powder is there and what is used for the 45 00:03:01,520 --> 00:03:07,000 Speaker 1: smelting process to turn it into aluminum. And that very complicated, 46 00:03:07,280 --> 00:03:11,120 Speaker 1: kind of messy, dirty process is at the heart of 47 00:03:11,160 --> 00:03:14,440 Speaker 1: these lawsuits and the complaints that people have about the 48 00:03:14,560 --> 00:03:17,080 Speaker 1: environment and their own health. I want to talk to 49 00:03:17,120 --> 00:03:20,480 Speaker 1: people both at the site of the mine itself that's 50 00:03:20,520 --> 00:03:24,600 Speaker 1: located in the center of the Amazon, in a national 51 00:03:24,680 --> 00:03:28,000 Speaker 1: forest area, in fact, in the rainforest, and I also 52 00:03:28,040 --> 00:03:31,279 Speaker 1: talk to the people who live around the alumina refinery 53 00:03:31,520 --> 00:03:34,679 Speaker 1: down at the end of the Amazon River. And in 54 00:03:34,720 --> 00:03:38,520 Speaker 1: both of those places people cited environmental damage and damage 55 00:03:38,560 --> 00:03:42,160 Speaker 1: to their health as a result of these processes. Jessica, 56 00:03:42,360 --> 00:03:46,840 Speaker 1: This alumina, which comes from Brazil winds up in many 57 00:03:46,920 --> 00:03:49,520 Speaker 1: different products around the world. Is that right? It does. 58 00:03:50,080 --> 00:03:54,720 Speaker 1: Some of the aluminum is process into aluminum here in Brazil, 59 00:03:55,080 --> 00:03:58,600 Speaker 1: but a lot of it goes to North America and Europe. 60 00:03:59,000 --> 00:04:03,760 Speaker 1: Generally the aerospace industry, the automotive industry, and the beverage 61 00:04:03,800 --> 00:04:06,960 Speaker 1: industry use a lot of this alumina in aluminum, and 62 00:04:07,200 --> 00:04:11,320 Speaker 1: what we focused on is how this aluminum ends up 63 00:04:11,600 --> 00:04:14,120 Speaker 1: in the four AD F one fifty. And the reason 64 00:04:14,160 --> 00:04:17,520 Speaker 1: we chose the F one fifty is because when Ford 65 00:04:17,520 --> 00:04:21,840 Speaker 1: announced that they were making the all electric F one 66 00:04:22,000 --> 00:04:26,600 Speaker 1: fifty EV Lightning last year, a lot of the auto 67 00:04:26,600 --> 00:04:31,000 Speaker 1: parts companies, which don't normally reveal who their customers are 68 00:04:31,200 --> 00:04:34,680 Speaker 1: supply chains tend to be a black box, announced that 69 00:04:34,760 --> 00:04:37,599 Speaker 1: they are supplying parts to the F one fifty and 70 00:04:37,760 --> 00:04:41,279 Speaker 1: we didn't know that information previously. So what that allowed 71 00:04:41,400 --> 00:04:44,760 Speaker 1: us to do is to be able to trace all 72 00:04:44,800 --> 00:04:49,200 Speaker 1: of those aluminum parts suppliers. If you look backwards, goes 73 00:04:49,240 --> 00:04:52,880 Speaker 1: back to Canada where the aluminum is smelted from the 74 00:04:52,920 --> 00:04:58,479 Speaker 1: alumina that comes from Brazil, and ninety percent of the 75 00:04:58,560 --> 00:05:02,320 Speaker 1: alumina that Canada uses to turn into aluminum comes from 76 00:05:02,480 --> 00:05:05,960 Speaker 1: this region of the Amazon. But another reason that we 77 00:05:06,040 --> 00:05:08,919 Speaker 1: chose the F one fifty to focus on is because 78 00:05:09,040 --> 00:05:13,159 Speaker 1: when Ford announced their electric vehicle, they said this is 79 00:05:13,200 --> 00:05:16,240 Speaker 1: the truck of the future, and they asked, can a 80 00:05:16,279 --> 00:05:20,520 Speaker 1: truck could change everything? And the key to transitioning, as 81 00:05:20,560 --> 00:05:24,359 Speaker 1: the Bid administration is pushing, the key to transitioning to 82 00:05:25,080 --> 00:05:30,280 Speaker 1: a more environmental future is getting Middle America, the rest 83 00:05:30,320 --> 00:05:33,240 Speaker 1: of America, not just people who buy Tuzla's in California 84 00:05:33,440 --> 00:05:37,600 Speaker 1: or the East Coast, but people who drive pickup trucks. 85 00:05:37,960 --> 00:05:41,440 Speaker 1: If you can convince these people that electric vehicles are 86 00:05:41,480 --> 00:05:45,160 Speaker 1: the future that changes everything. And so that's why we 87 00:05:45,240 --> 00:05:48,880 Speaker 1: chose Ford because it's iconic. It's the best selling pickup 88 00:05:48,880 --> 00:05:51,880 Speaker 1: truck in America and has been for decades. Once we 89 00:05:51,920 --> 00:05:55,680 Speaker 1: started tracing it, it turned out that the aluminum that 90 00:05:55,839 --> 00:05:58,599 Speaker 1: is made from this alumina from this box side in 91 00:05:58,600 --> 00:06:01,840 Speaker 1: the Amazon is in the exterior panels of the F 92 00:06:01,960 --> 00:06:05,240 Speaker 1: one fifty. It's in something called a rocker that runs 93 00:06:05,240 --> 00:06:07,960 Speaker 1: from the front door to the back door underneath the doors. 94 00:06:07,960 --> 00:06:11,520 Speaker 1: It's in other parts, including the tubing for the frame 95 00:06:11,600 --> 00:06:14,400 Speaker 1: on the interior of the accab. It's very, very hard 96 00:06:14,520 --> 00:06:18,000 Speaker 1: to find any aluminum in this supply chain that is 97 00:06:18,040 --> 00:06:23,599 Speaker 1: not touching the Amazon. Jessica. Long before this aluminum is 98 00:06:23,680 --> 00:06:26,480 Speaker 1: used in parts for the four D F one fifty Lightning, 99 00:06:27,320 --> 00:06:31,120 Speaker 1: it has its origins deep in the Amazon. Can you 100 00:06:31,200 --> 00:06:36,920 Speaker 1: explain the start of this process, The very beginning of 101 00:06:36,920 --> 00:06:39,320 Speaker 1: this supply chain is in the heart of the Amazon, 102 00:06:39,960 --> 00:06:45,120 Speaker 1: at a mine called MRN. That mine's been operating for decades, 103 00:06:45,279 --> 00:06:51,040 Speaker 1: and when it originally started operating, the emphasis on environmental 104 00:06:51,080 --> 00:06:54,839 Speaker 1: protection wasn't as great. They went out there and they 105 00:06:55,480 --> 00:06:58,640 Speaker 1: polluted a lot of the water, they dumped a lot 106 00:06:58,640 --> 00:07:02,120 Speaker 1: of the waste. Communities they are still suffering from that. 107 00:07:03,279 --> 00:07:06,800 Speaker 1: MRN now says that they have an open dialogue with 108 00:07:06,920 --> 00:07:09,360 Speaker 1: a lot of the folks who live around in these communities. 109 00:07:09,680 --> 00:07:11,840 Speaker 1: They say they test the water to make sure that 110 00:07:11,880 --> 00:07:15,440 Speaker 1: the pollution is not happening. But they are still located 111 00:07:15,480 --> 00:07:19,120 Speaker 1: in the middle of a nationally protected forest, and some 112 00:07:19,200 --> 00:07:21,360 Speaker 1: of the expansion that they want to do now, they 113 00:07:21,360 --> 00:07:26,080 Speaker 1: want to expand quite dramatically into that forest. It overlaps 114 00:07:26,120 --> 00:07:29,080 Speaker 1: with a protected area known as a kilombola, which is 115 00:07:29,200 --> 00:07:33,040 Speaker 1: land that's been set aside for descendants of formerly enslaved people. 116 00:07:33,640 --> 00:07:35,680 Speaker 1: Just the fact that it's in the middle of a 117 00:07:35,760 --> 00:07:38,960 Speaker 1: national rainforest in the Amazon, it's going to have to 118 00:07:39,040 --> 00:07:41,600 Speaker 1: DeForest a lot of that land in order to get 119 00:07:41,640 --> 00:07:44,760 Speaker 1: to that box side. If you talk to MRN, their 120 00:07:44,880 --> 00:07:48,679 Speaker 1: executives say that there's a real difference in perception about 121 00:07:48,760 --> 00:07:52,440 Speaker 1: what the local communities say is happening to them and 122 00:07:52,640 --> 00:07:57,120 Speaker 1: what the mine says it's actually doing. The mining company 123 00:07:57,440 --> 00:08:02,200 Speaker 1: studies the water and sends those audies to the environmental 124 00:08:02,240 --> 00:08:05,560 Speaker 1: regulator every year. We weren't able to get that data, 125 00:08:05,600 --> 00:08:09,239 Speaker 1: but they say that those studies show that the water 126 00:08:09,400 --> 00:08:12,720 Speaker 1: is okay for those folks. However, the perception of the 127 00:08:12,760 --> 00:08:15,840 Speaker 1: communities is that it's not at all okay. And what 128 00:08:15,880 --> 00:08:18,520 Speaker 1: we're really talking about here is that the lack of 129 00:08:18,720 --> 00:08:23,720 Speaker 1: law in Brazil to protect these communities and to prevent 130 00:08:24,040 --> 00:08:27,880 Speaker 1: this sort of pollution from happening, or monitoring it or 131 00:08:28,040 --> 00:08:32,840 Speaker 1: catching it. It's just not there. Amaran is operating within 132 00:08:32,920 --> 00:08:35,480 Speaker 1: the laws of Brazil. It's just that the laws are 133 00:08:35,520 --> 00:08:39,240 Speaker 1: incredibly weak, Sheridan. We think of the Amazon is being 134 00:08:39,320 --> 00:08:42,360 Speaker 1: wild and remote, but in fact, the area around this 135 00:08:42,480 --> 00:08:44,920 Speaker 1: mine has a lot of people living around it. Is 136 00:08:44,920 --> 00:08:47,760 Speaker 1: that right. The mine is located in such a huge 137 00:08:47,800 --> 00:08:51,320 Speaker 1: area that is surrounded by water on at least three 138 00:08:51,320 --> 00:08:55,280 Speaker 1: sides of it. Communities are dotted all along the area 139 00:08:55,320 --> 00:08:58,560 Speaker 1: where the mine is located. It's important to note and 140 00:08:58,800 --> 00:09:00,640 Speaker 1: when I went to the mine and talk to the 141 00:09:00,640 --> 00:09:04,040 Speaker 1: people all along the periphery. What they say is the 142 00:09:04,160 --> 00:09:07,480 Speaker 1: mine itself is located on a plateau, it's higher elevation, 143 00:09:07,960 --> 00:09:11,120 Speaker 1: and the river is below. So what happens is rain water, 144 00:09:11,400 --> 00:09:15,160 Speaker 1: and just kind of the natural process of ecosystems means 145 00:09:15,200 --> 00:09:19,080 Speaker 1: that the waste that's generated, even if done in the 146 00:09:19,120 --> 00:09:23,160 Speaker 1: most ecologically sound way possible, still flows down to their communities. 147 00:09:23,440 --> 00:09:26,920 Speaker 1: And so what they told me was that because of 148 00:09:26,960 --> 00:09:30,199 Speaker 1: this runoff problem from the plateau and because of the 149 00:09:30,280 --> 00:09:33,720 Speaker 1: damage that had been done over the decades, they are 150 00:09:33,800 --> 00:09:37,440 Speaker 1: facing issues, including the loss of their fish in the 151 00:09:37,480 --> 00:09:40,760 Speaker 1: water that they relied on for their livelihood. They can't 152 00:09:40,840 --> 00:09:43,679 Speaker 1: drink the water any longer. If they bathe in it, 153 00:09:43,960 --> 00:09:48,160 Speaker 1: their skin gets itchy. In certain seasons around a lake 154 00:09:48,400 --> 00:09:52,040 Speaker 1: that mr and filled up with mine tailings in the eighties, 155 00:09:52,280 --> 00:09:54,720 Speaker 1: the mind tailings are still there, and in the dry season, 156 00:09:55,200 --> 00:09:59,080 Speaker 1: the lake drives up red mud is visible. Fish nearby 157 00:09:59,240 --> 00:10:03,400 Speaker 1: turn red. If they eat those fish, they get sick. Sheridan, 158 00:10:03,480 --> 00:10:06,439 Speaker 1: you spoke to one woman who lives along the Amazon 159 00:10:06,640 --> 00:10:09,680 Speaker 1: and has been affected by this. I spoke to Maria 160 00:10:09,720 --> 00:10:13,800 Speaker 1: Delmo do Santos, who lives on the edge of Batata 161 00:10:13,960 --> 00:10:18,480 Speaker 1: Lake where Mran had dumped their mining waste back in 162 00:10:18,520 --> 00:10:29,440 Speaker 1: the eighties. It's still affecting their lives profoundly every day. Yeah, 163 00:10:30,240 --> 00:10:34,520 Speaker 1: the water becomes like this colored, all red, full of bubbles. 164 00:10:34,840 --> 00:10:38,640 Speaker 1: It gets dirty like mud. Really, when it comes and dries, 165 00:10:38,800 --> 00:10:41,720 Speaker 1: it's like mud. You can't see anything at the bottom. 166 00:10:42,080 --> 00:10:44,800 Speaker 1: Even our feet when we dip them in, we can't 167 00:10:44,800 --> 00:10:49,320 Speaker 1: see anything. It's like mud, half white, half red. It's 168 00:10:49,360 --> 00:10:55,040 Speaker 1: worse if we dip our fit in Sheridan. You also 169 00:10:55,240 --> 00:10:59,680 Speaker 1: ask this same woman whether she thinks the water will 170 00:10:59,720 --> 00:11:09,240 Speaker 1: ever get cleaned up. Now, senior to ground, you don't, no, no, 171 00:11:09,679 --> 00:11:12,400 Speaker 1: because to go in this lake is very big, and 172 00:11:12,440 --> 00:11:15,800 Speaker 1: there's no way to clean it unless Jesus came down 173 00:11:15,880 --> 00:11:17,840 Speaker 1: and said he was going to clean it, because he 174 00:11:17,880 --> 00:11:20,320 Speaker 1: has the power to do so. But I don't think 175 00:11:20,360 --> 00:11:23,679 Speaker 1: there's anyone's machine that could clean it. The book seat 176 00:11:23,840 --> 00:11:28,880 Speaker 1: is a lot so much. These are communities, and this 177 00:11:28,960 --> 00:11:33,040 Speaker 1: is a region that's just extremely remote. It is very 178 00:11:33,120 --> 00:11:37,120 Speaker 1: difficult to get there. And these communities are traditional communities 179 00:11:37,520 --> 00:11:41,760 Speaker 1: that still live very much by you know, fishing and 180 00:11:41,880 --> 00:11:45,160 Speaker 1: what they can gather, what they can hunt. Any sort 181 00:11:45,200 --> 00:11:48,440 Speaker 1: of pollution or any threat to that is a threat 182 00:11:48,480 --> 00:11:52,360 Speaker 1: to their their livelihoods. They don't have options. There aren't 183 00:11:52,440 --> 00:11:54,400 Speaker 1: roads to these areas. They don't have options to go 184 00:11:54,440 --> 00:11:58,840 Speaker 1: out and get other supplies or help or other water. 185 00:11:59,640 --> 00:12:02,840 Speaker 1: When I asked people living around the mine how profoundly 186 00:12:02,880 --> 00:12:06,440 Speaker 1: they are affected by the pollution, it became clear that 187 00:12:06,480 --> 00:12:09,559 Speaker 1: it's become even a part of their identity. One of them, 188 00:12:09,640 --> 00:12:13,800 Speaker 1: Haimundo da Silva, who's seventy nine years old, started singing 189 00:12:13,800 --> 00:12:17,360 Speaker 1: a song that he wrote about witnessing these changes over 190 00:12:17,440 --> 00:12:31,960 Speaker 1: his lifetime. Doe o ma fisawaking game for Ja god 191 00:12:32,080 --> 00:12:44,319 Speaker 1: ista luisa dasuja da boshitaki vanda mean data. So this 192 00:12:44,480 --> 00:12:48,959 Speaker 1: mine MRN pulls up the box site and what happens 193 00:12:49,000 --> 00:12:53,040 Speaker 1: from there? They run it along a railway that goes 194 00:12:53,120 --> 00:12:56,240 Speaker 1: to a port that is along a tributary of the 195 00:12:56,280 --> 00:13:00,800 Speaker 1: Amazon River. At that port, they loaded onto ships, big 196 00:13:00,920 --> 00:13:04,040 Speaker 1: hulking container ships, and they fill the holds of those 197 00:13:04,040 --> 00:13:08,080 Speaker 1: ships with powdered box site that's been ground up, and 198 00:13:08,400 --> 00:13:12,120 Speaker 1: they take it eight hundred miles down the Amazon River 199 00:13:12,720 --> 00:13:16,439 Speaker 1: to where the Amazon empties into the Atlantic Ocean, which 200 00:13:16,480 --> 00:13:21,480 Speaker 1: is where the refinery is located. And Sheridan, you travel 201 00:13:21,600 --> 00:13:24,640 Speaker 1: down the Amazon behind one of these boats, is that right? 202 00:13:24,880 --> 00:13:29,120 Speaker 1: What did you find as we went down the Amazon River. 203 00:13:29,520 --> 00:13:32,960 Speaker 1: It's just an incredibly beautiful landscape, of course, as you 204 00:13:33,000 --> 00:13:36,800 Speaker 1: can imagine, in infinite shades of green and missionary churches 205 00:13:36,840 --> 00:13:39,520 Speaker 1: all dotting along the sides, and then right in the 206 00:13:39,520 --> 00:13:43,320 Speaker 1: middle these big, hulking container ships with tons of box 207 00:13:43,360 --> 00:13:47,280 Speaker 1: site heading towards the refinery. There's a real disequilibrium between 208 00:13:47,280 --> 00:13:51,320 Speaker 1: the beautiful nature and the actual processes of getting this 209 00:13:51,480 --> 00:13:54,480 Speaker 1: box site out of the middle of the Amazon. It 210 00:13:54,559 --> 00:13:58,439 Speaker 1: skirts the equator and then comes back around to the refinery, 211 00:13:58,440 --> 00:14:01,800 Speaker 1: which is located right at the heart of where the 212 00:14:01,840 --> 00:14:06,640 Speaker 1: Amazon meets the Atlantic Ocean. Jessica and Sheridan, please stay 213 00:14:06,640 --> 00:14:18,960 Speaker 1: with me. Our conversation continues after the break, Jessica. Once 214 00:14:19,040 --> 00:14:23,600 Speaker 1: those giant container ships emerge from the river and reach 215 00:14:23,680 --> 00:14:27,600 Speaker 1: the refinery, what happens the next So the box side 216 00:14:27,680 --> 00:14:31,000 Speaker 1: is unloaded at a couple refineries that are there. There's 217 00:14:31,280 --> 00:14:33,440 Speaker 1: the Alu Norte refiner, which is the one that we 218 00:14:33,600 --> 00:14:37,479 Speaker 1: focused on. The box SIT's unloaded broad into that refinery 219 00:14:37,560 --> 00:14:41,600 Speaker 1: where it's turned into aluminum. Just a note here for 220 00:14:41,640 --> 00:14:44,720 Speaker 1: a second, we're saying Norse, Chidro and Alu Norte, but 221 00:14:45,280 --> 00:14:51,600 Speaker 1: these names are also sometimes pronounced Norsehedro and Alu nor Sheridan. 222 00:14:52,040 --> 00:14:56,960 Speaker 1: Just as people complain about health and environmental problems as 223 00:14:57,000 --> 00:15:00,280 Speaker 1: a result of the mining of this box site, people 224 00:15:00,280 --> 00:15:04,840 Speaker 1: who live around the refinery also say that that process 225 00:15:05,200 --> 00:15:09,800 Speaker 1: makes them sick. The lawsuit representing eleven thousand people who 226 00:15:09,840 --> 00:15:14,200 Speaker 1: live in that community says that because of many, many 227 00:15:14,280 --> 00:15:18,000 Speaker 1: years of environmental pollution that they say is caused by 228 00:15:18,000 --> 00:15:23,960 Speaker 1: the refinery, they suffer terrible health problems, including hair loss 229 00:15:24,000 --> 00:15:29,480 Speaker 1: and neurological problems. People report birth defects, including babies being 230 00:15:29,520 --> 00:15:32,920 Speaker 1: born with their intestines outside their bodies. They say they 231 00:15:32,960 --> 00:15:37,240 Speaker 1: have cancer and higher mortality than other communities. Studies of 232 00:15:37,520 --> 00:15:41,320 Speaker 1: the lead and aluminum content in these people's bodies shows 233 00:15:41,920 --> 00:15:44,760 Speaker 1: levels that are far far higher than what is allowed 234 00:15:45,080 --> 00:15:49,240 Speaker 1: for normal states of health. The water is not drinkable 235 00:15:49,360 --> 00:15:53,520 Speaker 1: around the refinery, and in fact North Chidro provides free 236 00:15:53,520 --> 00:15:56,880 Speaker 1: water to the community because the water can't be drunk. 237 00:15:57,840 --> 00:16:01,840 Speaker 1: Sharedon you spoke with Alunarte, What did they say about 238 00:16:01,840 --> 00:16:05,640 Speaker 1: the things you're describing? So Alanorte and its owner Norse Hidro, 239 00:16:06,040 --> 00:16:12,000 Speaker 1: deny any and all environmental pollution say they're operating completely 240 00:16:12,160 --> 00:16:16,560 Speaker 1: within Brazilian standards and that there is zero effect from 241 00:16:16,600 --> 00:16:19,720 Speaker 1: them in the community. I suppose now that is why 242 00:16:19,880 --> 00:16:23,360 Speaker 1: this lawsuit seeks to sort out. So the Brazilian lawyer 243 00:16:23,400 --> 00:16:27,040 Speaker 1: who's bringing the case had tried five times already to 244 00:16:27,200 --> 00:16:32,600 Speaker 1: sue Alanorte and its owner, nors Hydro iNTS in Brazil, 245 00:16:32,840 --> 00:16:35,240 Speaker 1: did not make any progress on those cases. Those are 246 00:16:35,240 --> 00:16:38,400 Speaker 1: all still pending. Then he teamed up with a global 247 00:16:38,480 --> 00:16:41,800 Speaker 1: law firm and brought the case in the Netherlands. So 248 00:16:41,880 --> 00:16:45,880 Speaker 1: that case is in Rotterdam District Court. Now the court 249 00:16:46,000 --> 00:16:49,440 Speaker 1: ruled that they do have jurisdiction over what's going on 250 00:16:49,520 --> 00:16:54,160 Speaker 1: in Brazil because Norse Hidro has subsidiaries and operations in 251 00:16:54,200 --> 00:16:57,680 Speaker 1: the Netherlands. So that case is scheduled to be heard 252 00:16:57,920 --> 00:17:00,960 Speaker 1: sometime in the coming months. Essica, you said just a 253 00:17:01,000 --> 00:17:06,600 Speaker 1: minute ago that Alu Norte and MRN operate within Brazilian law. 254 00:17:07,119 --> 00:17:11,720 Speaker 1: How is it that the Brazilian government allows this to happen. 255 00:17:11,840 --> 00:17:15,480 Speaker 1: Why would they not want to protect the Amazon, which 256 00:17:15,520 --> 00:17:18,320 Speaker 1: is sort of the beating heart of Brazil. It comes 257 00:17:18,320 --> 00:17:22,480 Speaker 1: down to the commodities market. I mean, Brazil is a 258 00:17:22,600 --> 00:17:28,200 Speaker 1: commodities powerhouse, so when you're talking about Amazon deforestation. The 259 00:17:28,240 --> 00:17:31,760 Speaker 1: government is not doing their own studies of this water, 260 00:17:32,600 --> 00:17:35,640 Speaker 1: and they're not doing their own studies of the health effects. 261 00:17:36,280 --> 00:17:38,919 Speaker 1: Do you expect that there will be closer scrutiny of 262 00:17:38,960 --> 00:17:43,240 Speaker 1: this going forward? I expect there to be closer scrutiny 263 00:17:43,359 --> 00:17:49,119 Speaker 1: of environmental damage going forward. The Environmental Regulator, the head 264 00:17:49,200 --> 00:17:51,840 Speaker 1: count there and the resources that they have access to 265 00:17:52,359 --> 00:17:56,120 Speaker 1: was gutted. And that wasn't just under the administration of 266 00:17:56,359 --> 00:18:00,159 Speaker 1: former President jam Bolsonado. Of course he accelerated it, but 267 00:18:00,200 --> 00:18:03,359 Speaker 1: that started years ago, years and years ago, because Brazil 268 00:18:03,480 --> 00:18:06,479 Speaker 1: wasn't a very serious recession embroiled in a very serious 269 00:18:06,480 --> 00:18:08,879 Speaker 1: corruption scandal. So this is more than a decade in 270 00:18:08,920 --> 00:18:13,320 Speaker 1: the making in which the environmental regulator has no teeth whatsoever. 271 00:18:13,720 --> 00:18:17,639 Speaker 1: So the environmental agency it acknowledges that it can't test 272 00:18:17,720 --> 00:18:21,320 Speaker 1: water quality around the MRN mine, but it does do inspections, 273 00:18:21,720 --> 00:18:26,560 Speaker 1: and over the past two decades it's fined MRN twenty 274 00:18:26,640 --> 00:18:31,280 Speaker 1: nine infractions totaling six point six million dollars, and they 275 00:18:31,320 --> 00:18:34,000 Speaker 1: say that they've only received ten percent of that amount. 276 00:18:35,960 --> 00:18:38,960 Speaker 1: I would like to give an example of the difference 277 00:18:39,000 --> 00:18:42,159 Speaker 1: between what's going on on the ground and the environmental regulation. 278 00:18:42,760 --> 00:18:46,800 Speaker 1: North Chidro invited me into Elinorte, gave me a tour 279 00:18:46,880 --> 00:18:49,320 Speaker 1: with a hard hat and a protective equipment and everything, 280 00:18:49,359 --> 00:18:52,399 Speaker 1: and showed me all of their procedures for how they 281 00:18:52,440 --> 00:18:55,840 Speaker 1: purify water and that they are a good environmental storage. 282 00:18:55,960 --> 00:18:58,919 Speaker 1: That's what they told me. During that visit. I asked 283 00:18:58,960 --> 00:19:04,159 Speaker 1: them about the emissions from the refinery. Eleanorte burns coal 284 00:19:04,840 --> 00:19:08,080 Speaker 1: every day in the morning, at dawn and the evening 285 00:19:08,119 --> 00:19:11,000 Speaker 1: at dusk. People say, and you can see this visibly, 286 00:19:11,440 --> 00:19:14,600 Speaker 1: that there are emissions, big clouds plumes that come out 287 00:19:14,680 --> 00:19:17,320 Speaker 1: of the refinery. They call it smoke, and they say 288 00:19:17,320 --> 00:19:20,600 Speaker 1: that that makes them choke, cough, and it feels like 289 00:19:20,680 --> 00:19:26,080 Speaker 1: pepper in their throats. I asked Eleanorte about this, and 290 00:19:26,240 --> 00:19:30,439 Speaker 1: what they said is it's just steam, it's just water vapor. 291 00:19:31,400 --> 00:19:34,200 Speaker 1: And I pressed them and said, but you know, people 292 00:19:34,240 --> 00:19:37,919 Speaker 1: say it's making them cough and choke, and they said, no, 293 00:19:38,119 --> 00:19:42,240 Speaker 1: all of our emissions meet environmental standards. So I went 294 00:19:42,240 --> 00:19:45,760 Speaker 1: back to North Hydro's annual report. In the report, it 295 00:19:45,840 --> 00:19:50,480 Speaker 1: shows that burning coal from the Eleanorte refinery emits a 296 00:19:50,600 --> 00:19:53,600 Speaker 1: large amount of sulfur dioxide into the atmosphere and their 297 00:19:53,640 --> 00:19:57,520 Speaker 1: co two emissions are and I calculated this the equivalent 298 00:19:57,640 --> 00:20:01,080 Speaker 1: of what Iceland produces in an entire year, and so 299 00:20:01,160 --> 00:20:05,320 Speaker 1: when they say we're following the law, they're correct. Correct. 300 00:20:05,720 --> 00:20:08,640 Speaker 1: So it's important to note that Alo Norte is not 301 00:20:08,760 --> 00:20:14,760 Speaker 1: the only industrial factory in the Bacadena area. It's an 302 00:20:14,760 --> 00:20:18,840 Speaker 1: industrial hub in the north of Brazil. And even at 303 00:20:18,880 --> 00:20:21,800 Speaker 1: Ali Norte itself, there were a lot of accidents and 304 00:20:21,960 --> 00:20:25,959 Speaker 1: spills that occurred before North Kidro took over the refinery. 305 00:20:26,520 --> 00:20:30,440 Speaker 1: Now the box side has been turned into alumina and 306 00:20:30,520 --> 00:20:35,359 Speaker 1: it begins another long journey. It's loaded onto ships at 307 00:20:35,400 --> 00:20:39,000 Speaker 1: the refineries in Brazil and then it goes to at 308 00:20:39,080 --> 00:20:41,640 Speaker 1: least the part that ends up in the US supply chain. 309 00:20:42,119 --> 00:20:46,399 Speaker 1: It goes up to Quebec, and in Quebec there are refineries. 310 00:20:46,440 --> 00:20:51,840 Speaker 1: They are owned by Rio Tinto and by Alcoa. Those 311 00:20:52,000 --> 00:20:56,879 Speaker 1: refineries turned the alumina into aluminum. That aluminum is what 312 00:20:57,000 --> 00:20:59,200 Speaker 1: comes back into the United States and turns into all 313 00:20:59,240 --> 00:21:02,440 Speaker 1: of the parts. What do those smelters have to say 314 00:21:02,800 --> 00:21:06,800 Speaker 1: about the source of the alumina that they're getting. The 315 00:21:06,880 --> 00:21:11,960 Speaker 1: two companies that own the aluminum smelters in Quebec, and 316 00:21:12,000 --> 00:21:14,960 Speaker 1: they are multiple smelters owned by these two companies. They 317 00:21:15,000 --> 00:21:19,440 Speaker 1: have or have had ownership stakes in MRN mine and 318 00:21:19,920 --> 00:21:22,919 Speaker 1: the refineries that make the alumina both, so they know 319 00:21:23,359 --> 00:21:26,280 Speaker 1: exactly the whole supply chain because they're part of the 320 00:21:26,320 --> 00:21:29,879 Speaker 1: producers of it in the first place. Secondly, when you 321 00:21:29,920 --> 00:21:32,680 Speaker 1: ask them about it, what they say is everybody along 322 00:21:32,720 --> 00:21:36,679 Speaker 1: the whole process says, we certify our standards. Everything is 323 00:21:36,960 --> 00:21:42,600 Speaker 1: certified by the Aluminum Stewardship Initiative and everybody is required 324 00:21:42,640 --> 00:21:46,520 Speaker 1: to sign supply chain code of conduct agreements. The problem 325 00:21:46,560 --> 00:21:50,640 Speaker 1: with the certification process is, according to Human Rights Watch, 326 00:21:50,680 --> 00:21:54,560 Speaker 1: which has challenged it, is that it's not rigorous enough. 327 00:21:54,960 --> 00:21:58,439 Speaker 1: It's a box ticking exercise in some cases, which just 328 00:21:58,760 --> 00:22:02,200 Speaker 1: relies on what the company has to say. And Norse 329 00:22:02,280 --> 00:22:05,520 Speaker 1: Chidro has a very clear point of view that they 330 00:22:05,520 --> 00:22:10,840 Speaker 1: don't cause any environmental damage at all whatsoever in the Amazon. 331 00:22:11,160 --> 00:22:15,520 Speaker 1: That's what they say, and that's what the certifiers of 332 00:22:15,720 --> 00:22:20,119 Speaker 1: this aluminum supply chain here. What they say also is 333 00:22:20,160 --> 00:22:23,439 Speaker 1: that they're relying to some degree on other sources. But 334 00:22:23,520 --> 00:22:27,160 Speaker 1: according to Human Rights Watch and others who criticize this process, 335 00:22:27,520 --> 00:22:31,239 Speaker 1: it's not thorough enough. And yet from the beginning of 336 00:22:31,359 --> 00:22:35,080 Speaker 1: the supply chain all the way to the end, each 337 00:22:35,119 --> 00:22:39,320 Speaker 1: of the points along the way can claim that they 338 00:22:39,320 --> 00:22:42,199 Speaker 1: are following the law and everything that they're doing is 339 00:22:42,280 --> 00:22:45,959 Speaker 1: legal and it is. Both the MR and mine and 340 00:22:46,000 --> 00:22:49,880 Speaker 1: the elin Orte refinery are certified as meeting environmental standards. 341 00:22:50,920 --> 00:23:02,399 Speaker 1: We'll be right back, Sheridan. What did you Norris Kidro 342 00:23:02,520 --> 00:23:06,159 Speaker 1: say when you ask them about your reporting? When I 343 00:23:06,200 --> 00:23:08,560 Speaker 1: first looked to make the links between the lawsuit in 344 00:23:08,640 --> 00:23:12,040 Speaker 1: Brazil against nors Kidro and the fact that they said 345 00:23:12,240 --> 00:23:14,720 Speaker 1: in an announcement that they make a part for the 346 00:23:14,840 --> 00:23:18,440 Speaker 1: F one fifty ev, I went to Brazil, did all 347 00:23:18,440 --> 00:23:23,000 Speaker 1: of the reporting around the refinery and asked Norse Chidro 348 00:23:23,880 --> 00:23:27,640 Speaker 1: about the connection, and what they said was, oh, well, 349 00:23:27,880 --> 00:23:31,520 Speaker 1: we don't source from Brazil for the part that we 350 00:23:31,600 --> 00:23:35,280 Speaker 1: make for FORD. So I thought, how is it then 351 00:23:35,359 --> 00:23:38,359 Speaker 1: that they're getting the aluminum in that case? So I 352 00:23:38,400 --> 00:23:42,240 Speaker 1: started digging through shipping records and what I was able 353 00:23:42,280 --> 00:23:48,399 Speaker 1: to do is trace the chain from the aluminary refinery 354 00:23:48,760 --> 00:23:53,199 Speaker 1: in Brazil to Quebec where it has turned into aluminum 355 00:23:53,280 --> 00:23:56,840 Speaker 1: and then comes back shipped back to the United States 356 00:23:57,000 --> 00:24:01,480 Speaker 1: using US import customs records and by saying that we 357 00:24:01,560 --> 00:24:06,080 Speaker 1: don't source from Brazil to our US factory, what they 358 00:24:06,119 --> 00:24:10,240 Speaker 1: emitted from that statement was that it goes via Canada. 359 00:24:10,400 --> 00:24:13,440 Speaker 1: Once I've found all of the aluminum smelters in Canada 360 00:24:13,520 --> 00:24:18,920 Speaker 1: are using this very same aluminum from the Elinorche refinery, 361 00:24:19,200 --> 00:24:21,199 Speaker 1: I was able to trace it to all of the 362 00:24:21,280 --> 00:24:24,080 Speaker 1: aluminum in the F one fifty, at least what's visible 363 00:24:24,080 --> 00:24:26,720 Speaker 1: on the exterior. After I went back to them and 364 00:24:26,760 --> 00:24:31,200 Speaker 1: said I have found your shipping records that show that 365 00:24:31,280 --> 00:24:35,119 Speaker 1: you are making the aluminum in Canada and then bringing 366 00:24:35,160 --> 00:24:37,920 Speaker 1: it to the US, they confirmed that that was correct. 367 00:24:38,480 --> 00:24:42,280 Speaker 1: Having studied a lot of different supply chains, commodity supply chains, 368 00:24:42,960 --> 00:24:46,840 Speaker 1: this is a common practice in the industry, whether you're 369 00:24:46,840 --> 00:24:50,719 Speaker 1: talking about beef production, you're talking about metals production. A 370 00:24:50,800 --> 00:24:54,240 Speaker 1: lot of companies when they say in their marketing campaigns 371 00:24:54,280 --> 00:24:59,760 Speaker 1: that we are responsibly sourcing our raw materials, they're only 372 00:24:59,760 --> 00:25:05,800 Speaker 1: t one step back. All commodities chains have several steps back. 373 00:25:05,880 --> 00:25:11,119 Speaker 1: I mean, it's a very long, complicated process that extends 374 00:25:11,359 --> 00:25:14,240 Speaker 1: to a halfway across the world, and so it feels 375 00:25:14,400 --> 00:25:18,680 Speaker 1: very disingenuous when you say, we're responsibly sourced, but you're 376 00:25:18,720 --> 00:25:22,919 Speaker 1: only looking at your direct supplier. You also went to Ford. 377 00:25:23,400 --> 00:25:26,440 Speaker 1: What did they say about your reporting on the source 378 00:25:26,480 --> 00:25:29,840 Speaker 1: of aluminum used in their vehicles? So at first Ford 379 00:25:29,920 --> 00:25:34,120 Speaker 1: was very skeptical and they thought that their supply chain 380 00:25:34,400 --> 00:25:38,560 Speaker 1: doesn't extend back to Brazil. When I presented them the 381 00:25:38,640 --> 00:25:42,400 Speaker 1: evidence that it does via Canada, they took it very 382 00:25:42,440 --> 00:25:46,120 Speaker 1: seriously and they issued a statement that said we are 383 00:25:46,200 --> 00:25:50,320 Speaker 1: committed to responsible sourcing that respects human rights in a 384 00:25:50,359 --> 00:25:54,440 Speaker 1: clean environment, and we are now looking into these allegations 385 00:25:54,480 --> 00:25:58,680 Speaker 1: as a result of your inquiry. Do you anticipate that 386 00:25:58,880 --> 00:26:01,800 Speaker 1: they will change the source of aluminum for their trucks. 387 00:26:02,200 --> 00:26:05,120 Speaker 1: The trouble with changing your source of aluminum is that 388 00:26:05,400 --> 00:26:09,280 Speaker 1: there really isn't any other supply. The only solution here 389 00:26:09,800 --> 00:26:13,040 Speaker 1: is to clean up the standards at the origin. We 390 00:26:13,160 --> 00:26:16,880 Speaker 1: began this story talking about how people who live around 391 00:26:17,119 --> 00:26:21,760 Speaker 1: both the minds and the refineries claim that they become 392 00:26:21,880 --> 00:26:25,560 Speaker 1: very sick and that it has damaged the environment. Where 393 00:26:25,560 --> 00:26:28,400 Speaker 1: are these lawsuits now? What is the status of these cases? 394 00:26:29,000 --> 00:26:32,560 Speaker 1: The case that's being brought in the Netherlands is scheduled 395 00:26:32,600 --> 00:26:36,280 Speaker 1: for hearings in the coming months. The court already ruled 396 00:26:36,320 --> 00:26:39,600 Speaker 1: that it has jurisdiction over what is happening in Brazil 397 00:26:39,680 --> 00:26:44,399 Speaker 1: because North Hidro has subsidiaries and operations in the Netherlands. 398 00:26:44,960 --> 00:26:47,880 Speaker 1: So what's going to happen there is that people from 399 00:26:48,400 --> 00:26:51,200 Speaker 1: the area in Barcarna around the refinery are going to 400 00:26:51,240 --> 00:26:54,800 Speaker 1: fly to the Netherlands and talk about how their health 401 00:26:54,840 --> 00:26:59,159 Speaker 1: and their livelihoods have been impacted by the refinery and 402 00:26:59,400 --> 00:27:02,359 Speaker 1: what they say is the pollution being caused by Norse Chidro. 403 00:27:03,000 --> 00:27:06,560 Speaker 1: Environmental laws in Brazil are very weak. Even if you 404 00:27:06,760 --> 00:27:10,840 Speaker 1: had strong laws on the books, the justice system often 405 00:27:10,960 --> 00:27:15,280 Speaker 1: just does not work. Prosecutors in Brazil will openly tell 406 00:27:15,280 --> 00:27:18,560 Speaker 1: you that they don't have the tools to go out 407 00:27:18,880 --> 00:27:25,280 Speaker 1: and punish cases of alleged pollution. These cases will get 408 00:27:25,440 --> 00:27:29,600 Speaker 1: stuck in the system for years or even decades forward, 409 00:27:29,600 --> 00:27:33,280 Speaker 1: and many other companies will need a lot more aluminum 410 00:27:33,440 --> 00:27:35,840 Speaker 1: in the years ahead, not just for trucks, but for 411 00:27:36,119 --> 00:27:40,080 Speaker 1: products of all kinds. Given what we're learning about where 412 00:27:40,119 --> 00:27:42,000 Speaker 1: a lot of it comes from, what do we take 413 00:27:42,000 --> 00:27:45,159 Speaker 1: away from this? Where do things go from here? It 414 00:27:45,200 --> 00:27:48,800 Speaker 1: does seem like environmental standards need to be tightened and 415 00:27:48,960 --> 00:27:52,280 Speaker 1: enforced at the source and if the Brazilian government isn't 416 00:27:52,359 --> 00:27:54,879 Speaker 1: able to do that, the companies need to take it 417 00:27:54,960 --> 00:28:01,640 Speaker 1: upon themselves to improve how they operate. For multinationals that 418 00:28:01,880 --> 00:28:07,159 Speaker 1: by their raw materials from developing countries, what's legal on 419 00:28:07,200 --> 00:28:11,080 Speaker 1: the ground is not a high enough bar for them 420 00:28:11,119 --> 00:28:14,040 Speaker 1: to be able to say that they are responsibly sourcing 421 00:28:14,040 --> 00:28:19,520 Speaker 1: their raw materials because so much is allowed on the ground. Jessica, Bryce, 422 00:28:19,880 --> 00:28:23,320 Speaker 1: Jared and Presso thanks for talking with me today. Thank 423 00:28:23,359 --> 00:28:27,480 Speaker 1: you my pleasure. Thanks for listening to us here at 424 00:28:27,520 --> 00:28:31,040 Speaker 1: The Big Take. It's a daily podcast from Bloomberg and iHeartRadio. 425 00:28:31,320 --> 00:28:34,560 Speaker 1: For more shows from my Heart Radio, visit the iHeartRadio app, 426 00:28:34,760 --> 00:28:37,959 Speaker 1: Apple Podcasts, or wherever you listen, and we'd love to 427 00:28:38,000 --> 00:28:41,040 Speaker 1: hear from you. Email us questions or comments to Big 428 00:28:41,080 --> 00:28:44,920 Speaker 1: Take at Bloomberg dot net. The supervising producer of The 429 00:28:44,960 --> 00:28:49,080 Speaker 1: Big Take is Vicky Bergolina. Our senior producer is Katherine Fink. 430 00:28:49,440 --> 00:28:53,240 Speaker 1: Federica Roman Yellow is our producer. Our associate producer is 431 00:28:53,320 --> 00:28:58,040 Speaker 1: Zeno Siddiki Hildegarcia is our engineer. Our original music was 432 00:28:58,080 --> 00:29:01,680 Speaker 1: composed by Leo Sidrin and West Casova. We'll be back 433 00:29:01,720 --> 00:29:03,560 Speaker 1: tomorrow with another Big Take.