(Bloomberg) -- Brazil’s Federal Police is investigating potential crimes on Braskem SA’s operations as a salt mine risks collapsing and engulfing part of a town in the northeastern state of Alagoas. 

Federal Police officers carried out 14 search and seizure warrants, in three Brazilian cities, targeting Braskem’s current and former employees and a chlorine soda plant, according to statements of Braskem and the police on Thursday. Investigations indicate there is evidence that mining activities did not follow safety parameters to guarantee the operation’s stability.

Braskem is monitoring the situation, it said, adding “it is and has always been available to the authorities and will provide all information throughout the process”. 

Read More: Braskem Cut to Junk as Fitch Warns of Environmental Risks (1)

Latin America’s largest petrochemical is under increasing pressure as the ground sinks in parts of the city of Maceio, forcing a state of emergency and thousands of people to evacuate. The company is facing a 1 billion-real ($203 million) lawsuit from local prosecutors and was recently stripped of its investment-grade status at Fitch Ratings, amid increased environmental, social and governance risks. 

Rock salt extraction in Alagoas capital from 1976 to 2019 missed guidelines set out in the scientific literature and resulted in severe instability in areas of the city, according to a police’s statement. The activity made the area uninhabitable, leading to more than 60,000 people being forced to leave the region. 

Braskem dollar notes due 2031 are down more than 1 cent amid thin liquidity.

--With assistance from Daniel Carvalho and Giovanna Bellotti Azevedo.

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