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Vale has worst quarter ever

Vale said the impacts of the Brumadinho tailings dam collapse had led to the first negative EBITDA in company history.
Vale has worst quarter ever Vale has worst quarter ever Vale has worst quarter ever Vale has worst quarter ever Vale has worst quarter ever

The January 25 collapse of the Córrego do Feijão dam killed over 200 people

Staff reporter

Negative EBITDA for the quarter was US$652 million.

The financial impact of the Brumadinho dam rupture on first quarter EBITDA was $4.95 billion due to provisions for compensation/remediation programs, decommissioning of dams, incurred expenses directly related to the collapse, loss of volumes, and stoppage costs.

Vale said the entire organisation was still grieving and completely focused on ensuring the safety of people and integrity of assets.

New CEO Eduardo Bartolomeo said he was committed to leading Vale through the most challenging period in its history.

"We will never forget Brumadinho and we will spare no effort in alleviating the suffering and repairing the losses of the impacted communities," he said.

"This focus on people and on safety will boost our operational excellence and will strengthen our license to operate, thus guaranteeing sustainable results through the supply of a high-quality product portfolio."

The company's net income for the quarter was negative $1.6 billion, down $5.4 billion on the previous quarter due to Brumadinho.

Net debt was up by $2.38 billion to $12 billion due to the freezing of $3.5 billion in funds to assist with the recovery effort.