A Brazilian federal court on Friday ordered Vale to halt activity at its Onsa Puma nickel mine, in Brazil’s Amazon state of Para, until it can demonstrate what actions it has taken to compensate indigenous communities in the region.

Vale’s operations in Para face regular legal and protest action by native Brazilian groups seeking better schools, health care and other public services.

Onsa Puma, in Ourilandia do Norte, is part of a complex of mines operated by Vale in the state’s Carajas region. The mine produced 5900t of finished nickel in the second quarter, or about 8.8% of Vale’s finished-nickel output.

The most common protest by indigenous groups has involved blocking Vale’s railline between Carajas Ocean.

The court also ordered Vale, the world’s second largest nickel producer, to deposit one-million reais for each indigenous village in the area until it establishes a compensation programme for the communities.

Vale’s press office said it had no immediate comment but added that it is investgating the situation.

The company has said it works closely with native groups but that many of their demands are the responsibility of Brazil’s federal and state governments, not Vale Under its mining incenses, Vale is required to provide environmental and other compensation to local communities.

Nickel, a metal that is both hard and malleable, is used primarily to make steel and other alloys rust resident. Rio de Janeiro-based Vale is also the largest producer of iron-ore, the main ingredient in steel.

• [Editor:Juan]