13 June 2012 23:03 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazilian biofuels company Raizen will scrap the sourcing of sugar cane grown on land belonging to an indigenous community in south-central Brazil, the company said on Wednesday.
The company signed an agreement with Brazil’s National Indian Foundation (FUNAI) recognising the territorial rights of the Guarani indigenous community in Caarapo, Mato Grosso do Sul state, the company said.
Raizen will also consult FUNAI to avoid further investment or expansion on land that is recognized as indigenous, the company said.
“Raizen have agreed not to acquire sugar cane for biodiesel production from land declared as indigenous territory by the Ministry of Justice,” a spokesperson for the company said.
“We are committed to reconciling economic growth with the sustainable development of communities in the vicinity of the company’s operations,” the spokesperson added.
The company could not confirm to what extent the agreement with FUNAI would affect production rates.
Raizen was established in 2011 as a joint venture between Shell and Brazilian ethanol giant Cosan to produce ethanol from sugar cane.
By Simon West
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