Brazilian justice freezes $3.44 bln from Vale's resources after dam failure

Courts in Brazil have ruled that up to 12.6 billion Reais ($3.44 billion) of Vale’s assets and resources will be frozen after the rupture of a tailings dam at Vale’s Córrego do Feijão iron ore mine, the miner stated on Friday February 1.

The federal prosecutors’ office, state prosecutors and the state government of Minas Gerais, where Feijão is located made most of the complaints. Additionally, the company is subject to around 350 million Reais in fines and penalties. Dam I of the mine failed on January 25 and flooded Vale’s own facilities as well as part of the local community and the Paraopeba river. Authorities confirmed that upto the time of publication 110 people have died and 238 more are missing. The accident has prompted Vale to decommission its 10 dams in Minas Gerais that operate through the upstream method, which is considered to be riskier. Vale, the world’s largest iron ore producer, also decided to temporarily halt the...

Published

Renato Rostás

February 01, 2019

18:00 GMT

São Paulo