Vale could pay $4.5bln in compensation for dam failure, bank says

Global miner Vale could be forced to pay as much as 17 billion Reais ($4.51 billion) in compensation for environmental damage and lives lost after the recent rupture at one of its iron ore tailings dams, Brazilian bank Itaú BBA said in a report on Tuesday January 29.

An iron ore tailings dam at the Feijão mine at Brumadinho in the state of Minas Gerais burst on Friday January 25, with waste material flooding the nearby community and the Paraopeba river. Itaú’s analysts Marcos Assumpção, Daniel Sasson and Carlos Eduardo Schmidt calculated that there will be a 15 billion Reais penalty relating to the flood damage, and another 2 billion Reais in compensation to the families of people who died in the accident. “The figure is in line with the overall 15-20 billion Reais...

Published

Renato Rostás

January 29, 2019

19:28 GMT

São Paulo