BULKS

Court orders Vale to set aside $1.5B

Injunction the highest amount yet according to state prosecutor

Staff reporter
 Brumadinho, pictured on January 31 2019. Image: Alex Lanza/MPMG

Brumadinho, pictured on January 31 2019. Image: Alex Lanza/MPMG

Minas Gerais Public Prosecutor (MPMG) said in a translated statement the injunction represented the highest amount ever recognised in a lawsuit of this nature in Brazil.

The judge's decision had been made without the miner's prior knowledge, Vale (BZ: VALE3) said in a statement yesterday.

It understood the lawsuit alleged Vale had, through its employees' actions, hindered the inspection activities of public agencies in the complex.

MPMG alleged illicit practices culminated in "one of the greatest socio-environmental disasters in the history of Minas Gerais and Brazil".

"In addition to the fine, the decision is important because it recognises the possibility of loss of Vale's profit in the Córrego do Feijão complex after the issuance of the false Declaration of Stability before the state environmental agency," Brumadinho's public prosecutor William Coelho, a member of the MPMG Task Force, said in the translated statement.

Vale said it remained firm in its commitment to repair the damage caused by the dam rupture of the Córrego de Feijão iron ore mine, which was its main focus of actions in Brumadinho.

"Vale will continue to contribute to all investigations and will present its defence in due course, after summoned, opportunity in which it will have access to the records and documents gathered by the MPMG," it said.

It's the latest in a series of legal actions over the dam collapse, which included state prosecutors charging 16 people including former Vale CEO Fabio Schvartsman with homicide and environmental crimes in January.

Vale had closed up 2.9% in Brazil yesterday to BRL50.64, capitalising it about 260 billion (US$49 billion).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

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.