What is the Carajas scheme?

Answer 1

The Carajas Plan is the largest iron ore mine in the world employing over 7,000 people. The ore is very rich in iron, containing 66% metal. The area is one tenth of Brazil and is estimated to hold enough reserves to carry on mining for the next 400 years. The mine is one of scores of hydropower, agricultural, and road projects that are increasingly removing the world's largest rainforest, and relies on overseas markets to purchase much of its iron ore.

The project required a massive investment of cash. Therefore, the World Bank agreed to invest money towards the project, on the condition that the area of rainforest cut down was limited to 10 kilometres each side of the railway cutting through the area to minimize deforestation. For the project however, this turned out to be insufficient. A settlement for workers was necessary, as well as transport links and a power source (hydro-electric power).

'Boom towns' outside the official Carajas scheme had started up initially due to a gold rush. Once the rush was over however, people remained in these developing towns as they thought that they could provide a service, like fishing or selling fruit by working in Carajas. Over 70,000 people had settled into nearby towns to make money. Factories, using wood or fuel as a resource, have been smelting ore along the railway line. To upkeep the production of iron, extra transport links needed to be built.

As the project developed, more and more of the rainforest was becoming deforested. Even though money was being made, the scheme had not come to terms with the agreement with their investors. The project stated that they were not to blame for the developing towns outside the official Carajas scheme and therefore should not be the ones to accuse for the increase in deforestation.

Answer 2

The Carajas scheme refers to a large-scale mining project in Brazil operated by Vale S.A. The project involves the extraction of iron ore, copper, and other minerals from the Carajas mountains in the Amazon region. The Carajas scheme has faced criticism for its environmental impact on the Amazon rainforest and indigenous communities in the area.