ESG

Vale convicted for damages by Brazil court

A Brazil state court has ruled Vale SA (BZ: VALE3) is responsible for repairing all the damage caused by its fatal Córrego do Feijão tailings dam collapse at Brumadinho in January.

Staff reporter
 An aerial view showing the aftermath of the January dam collapse at Brumadinho in Brazil

An aerial view showing the aftermath of the January dam collapse at Brumadinho in Brazil

Judge Elton Pupo Nogueira did not specify the value the miner should pay, according to a statement translated from the Minas Gerais court's website, because the consequences were not quantifiable only by technical-scientific criteria.

The judge said the definition of value was "not limited to the deaths resulting from the event, because it also affects the local and regional environment, in addition to the economic activity exerted in the affected regions".

The court cited information from the fire department, which said the dam collapse had killed 247 people and 23 were still missing.

In addition, nearly 13 million cubic metres of ore tailings had reached the Paraopeba River, which runs through several cities and was used for water supply to the metropolitan area of the capital.

The judge said the R11 billion (US$2.89 billion) of Vale assets frozen by the court would remain blocked, which he said equalled only half of the miner's profit in 2018 and would not impede Vale's economic performance.

However he allowed half the amount to be replaced by other financial guarantees.

The judge also rejected requests for the suspension of activities or judicial intervention in Vale and noted the company's cooperation with the actions requested by authorities.

"Vale reaffirms its total commitment to the prompt and fair reparation of damages caused to the families, to the infrastructure of communities and to the environment," the miner said in acknowledging the court's decision.

Vale had reported its worst quarter ever for the March period due to the impacts of the Brumadinho disaster.
 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.