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Vale's US$1.5B guarantee not required, again

Brazil-based miner Vale SA says it is once again no longer required to provide US$1.5 billion (R$7.9 billion) guarantee for a possible fine or forfeiture relating to its January 2019 Brumadinho tailings dam disaster which killed 270 people.
Vale's US$1.5B guarantee not required, again Vale's US$1.5B guarantee not required, again Vale's US$1.5B guarantee not required, again Vale's US$1.5B guarantee not required, again Vale's US$1.5B guarantee not required, again

Image: Unsplash/Jason Leung

Staff reporter

It's the latest twist in the legal matter, which began with the Minas Gerais Public Prosecutors successfully seeking the guarantee in May.

Vale effectively had the decision reversed in June.

Last week the suspension on the request for guarantees was dismissed, with judge Leite Praça determining Vale must present the guarantee by July 23 to ensure the enforcement of any fine or forfeiture of assets, rights and values in the future. 

Vale said it would appeal, and on Friday said a court had determined the request had already been examined and declared its previous decision without effect.

"Therefore, Vale's requirement to provide guarantees of R$7.9 billion is suspended," the company said.

Vale is due to release its second quarter production and sales report after market close today.