By Ana Mano
SAO PAULO (Reuters) - Federal prosecutors in Brazil have recommended that the country's environment agency Ibama suspend blasting work in the bay of Paranagua port pending an investigation into the death of a diver, according to a statement on Wednesday.
The statement called on Ibama to immediately suspend the license it had granted for the blasting work based on "possible non-compliance with basic safety rules for people, especially employees on the work site," as well as potential contamination of the environment and threats to local marine life.
Ibama did not immediately respond to a request for comment.
Suspension of the work will likely stall completion of the blasting project that started in 2021 to deepen the bay. The public company that runs the port, Portos do Parana, said then the project would improve navigability and security for ships.
Portos do Parana and TCP, the privately owned company that manages the port's container terminal, said in statements they are cooperating with the authorities handling the investigation, without elaborating.
TCP, a part of China Merchants Port Group, is South America's largest container terminal.
Located close to farming and industrialized regions in southern Brazil, Paranagua is one of country's busiest ports, together with Santos, in Sao Paulo state.
Last year, global grain traders shipped 14.6 million metric tons of soybeans and 4.1 million tons of corn out of Paranagua, according to shipping data.
The project was budgeted at 23 million reais ($4.7 million).
($1 = 4.9446 reais)
(Reporting by Ana Mano; Editing by Tom Hogue)
