Controversies

Since 2002, as Salgema’s successor, Braskem has operated rock salt extraction wells in the City of Maceió, State of Alagoas, in order to provide raw material to its chlor-alkali and dichloroethane production unit. In March 2018, there was an earth tremor in Maceió, and cracks were found in buildings and public roads of the neighborhoods of Pinheiro, Bebedouro, Mutange and Bom Parto. A report by the Brazilian Geological Survey (CPRM) was published in May 2019, providing a clear link between the geological characteristics and the destruction activities carried out by Braskem.

On May 9, 2019, Braskem preventively decided to halt rock salt extraction in the region and, in this context, initiated an investment project to acquire salt from third parties as raw material for the plant in Alagoas. Since then, the Company has devoted its best efforts to understanding geological knowledge for analysis of (i) possible surface effects; and (ii) the stability of rock salt sources. The results have been shared with the National Mining Agency (“ANM”) and other relevant authorities, with whom the Company maintains ongoing dialogue.

To ensure the safety of communities, on November 14, 2019, based on the results of the studies conducted and the recommendations of experts, Braskem proposed the creation of a protective area around specific wells. Also in May 2019, the Federal and State Public Prosecutors’ Offices, as well as the Federal and State Public Defender’s Offices of Alagoas, supported the Public Civil Action (ACP Residents), seeking instructions from the Company to compensate the residents of Pinheiro, Mutange, and Bebedouro for the estimated R$6.7 billion in damages. Furthermore, the Federal Public Prosecutor’s Office of Alagoas filed a Socio-Environmental Public Civil Action (ACP Socioambiental) against Braskem and other defendants, including its main shareholders, Petrobras and Novonor, seeking compensation for socio-environmental and other collective damages in the amount of R$27.6 billion.

Braskem advanced with the appropriate authorities and, on January 3, 2020, signed the Agreement for Support in the Eviction of Risk Areas (Agreement – ​​Residents), together with the State Public Prosecutor’s Office (MPE), the State Public Defender’s Office (DPE), the Federal Public Prosecutor’s Office (MPF), and the Federal Public Defender’s Office (DPU). This agreement provides for cooperative actions to evict at-risk areas and assist the population living in these areas through the Financial Compensation and Relocation Support Program (PCF).

On December 30, 2020, the Company and the authorities signed: (i) the Second Amendment to the Residents’ Agreement, including additional properties; and (ii) the Socio-Environmental Reparation Agreement (referring to the Socio-Environmental ACP), through which Braskem committed to adopting measures to stabilize and monitor current deficiencies in the rock salt protection system, as required by the ANM in the mining front closure plan, as well as to repair, mitigate, or compensate for potential socio-environmental impacts resulting from the event and the evacuation of the areas. With the execution of these agreements, the Residents’ ACP and the Socio-Environmental ACP against Braskem were terminated. More information about the geological event can be found in the Company’s Quarterly Financial Statements, available on the Results Center page.

Measures Adopted by Braskem

Braskem has been working hard and collaborating with the government, adopting measures to relocate residents, pay financial compensation, stabilize and monitor wells, and ensure assistance to residents and their urban mobility.

With the support of independent institutions and renowned national and international experts, it has conducted and continues to develop studies focused on understanding the geological phenomenon, as well as analyzing the stability of rock salt wells, which are no longer in operation. The results of these studies are periodically shared with the ANM and other competent authorities, with whom the Company maintains ongoing dialogue.

In this regard, measures were presented to the ANM to close the salt extraction fronts in Maceió, including measures to close and monitor their wells. These measures were approved by the ANM and are being implemented by Braskem.

Regarding the Residents’ Agreement, as of June 30, 2025, approximately 14,533 properties had been vacated and 19,190 compensation proposals had been submitted to residents, business owners, and merchants, with more than 19,072 compensation payments having been made. The overall acceptance rate for the proposals is 99.9%. Braskem paid out more than R$4.2 billion in compensation, financial assistance, and attorney fees.

For the closure and monitoring of the salt caverns, stabilization and monitoring actions were defined for all 35 existing mining fronts based on sonar results and technical studies. It is reiterated that any need for additional actions is continuously assessed by the Company and is based on technical studies prepared by external experts. These studies are submitted to the appropriate authorities and adhere to the deadlines agreed upon within the scope of the mine closure plan, which is publicly available and regularly reassessed with the ANM. Subsidence is a dynamic process present in the area of ​​the priority action lines map and must continue to be monitored during the actions outlined in the closure plan.

Regarding environmental actions, in June 2022, in compliance with the Social and Environmental Reparation Agreement, Braskem submitted to the Federal Public Prosecutor’s Office (MPF) an environmental assessment containing an assessment of the environmental impacts resulting from past rock salt extraction activities and the corresponding environmental plan with proposed necessary measures. Braskem began implementing the actions outlined in the plan and continues to implement its commitments and share the results of its actions with the authorities, as outlined in the agreement.

As one of the developments of the cavern 18 event, as outlined in the Social and Environmental Reparation Agreement, a specific Environmental Assessment was completed to assess the impacts caused by the cavern’s collapse, conducted by the contracted specialized company. The report was filed with the authorities and is awaiting their opinion regarding the additional recommended actions, which consist of monitoring supplementary to the ongoing environmental plan.

Similarly, in compliance with the Socio-Environmental Reparations Agreement, Braskem hired an external consultancy specializing in socio-environmental risk analysis and management. Braskem submitted the consultancy’s report to the Federal Public Prosecutor’s Office (MPF), and the proposed actions have already been implemented by the company in its management programs.

Additionally, Braskem has been adopting socio-urban planning measures in the affected neighborhoods, including actions and measures in the vacant areas, urban mobility and social compensation initiatives, compensation for social damages and collective moral damages, and any contingencies related to the actions in the vacant areas and urban mobility. Of the 11 urban mobility projects defined, 6 have already been completed, and the remainder are underway. Regarding the actions in the vacant areas, the overall progress of the Mutange Hillside Stabilization project is 98.5%, and activities related to the demolition of this area have already been completed. Other activities related to emergency demolition of the areas are ongoing as requested by DCM and have already reached 62.6% of the total area to be demolished (73.5% in terms of number of properties). Furthermore, the Company is implementing neighborhood conservation initiatives, including property security, waste management, and pest control. Regarding the Socio-Urban Action Plan (PAS), of the 30 actions under Braskem’s responsibility, 6 are under implementation (3 social actions in the Culture Hub and 3 civil works), 11 are in planning, and 13 are to be planned. In addition to all these actions, Braskem is pursuing additional measures, including requalification and compensation for the Flexais region.

More information on the developments of the geological phenomenon and the measures adopted by Braskem is available at https://www.braskem.com.br/alagoas.

Last updated in June 2025.