The argument is being harshly criticized by experts and locals, who believe the law-enforced audible could have saved lives.
Brazil Mining News
The financial penalties related to the dam collapse may prove even larger than those for Samarco.
The loss of about 40 million tonnes of annual supply is expected to boost demand for Australian ore.
Funds expected to be used as compensation for the victims of last week’s tailing burst, which killed at least 99 people.
CSN is aiming to reduce debts that piled up after an iron ore and steel price rout in 2015-2016 and a severe recession in Brazil, prompting investors to demand asset sales.
Vale said it plans to release its fourth quarter earnings report on March 27 rather than Feb. 13 as originally planned.
Vale production cuts could have "outsized" impact in shorter term with spot prices predicted to return to $100-plus per tonne in summer.
Brazilian authorities and companies involved with river water management are trying to stop the torrent of mining waste from reaching the Sao Francisco river, a source of drinking water for communities in five of the country's 26 states.
48 people have been identified so far, as work continues in the area.
Chief Executive Fabio Schvartsman said Vale would halt operations using those dams and spend 5 billion reais ($1.3 billion) to decommission them.
Bolsonaro and his cabinet are swiftly dialing back promises of deregulation.
The International Coalition of Large Dams (ICOLD) group "is recommending that dams, especially large dams, be built by dam professionals.
Two other engineers, who worked for Germany’s TUEV SUED on a contract where they attested to the safety of the Vale dam, were arrested in Sao Paulo.
"Negotiations may or may not continue," the company said in statement.
On Saturday TUEV SUED told Reuters it had not found the dam to be damaged when it was inspected last September.
“Before pointing out fingers we need to see what happened first”
"The fact is that Vale's share drop was even steeper than some market participants expected"
"We're worried that the mine accident might lead to higher premiums on low-aluminium iron ore"
By Monday, local officials had confirmed at least 60 people dead and said they fear that among the hundreds who are still missing there will be very few survivors.
“How can they let this happen again?” Melo said. “They wiped out our city.”
Vale plunged as much as 20 percent in Sao Paulo on Monday, the biggest intraday drop since October 2008.
An alarm warning of an imminent mining dam rupture was issued on Sunday morning near Brumadinho, the same Brazilian community where the collapse of Vale's dam on Friday killed at least 58 and left over 400 more feared dead.
As early as next week, iron ore prices may start to reflect the impacts of Vale's dam bursting at Corrego de Feijao in Brumadinho.
Nine bodies had been recovered by Saturday morning.
The announcement was made after both companies confirmed the original terms of an earn-in agreement they signed back in 2017.