The move is aimed at providing a tool for institutional investors to assess the risk from their holdings in mining companies.
Corrego do Feijao Mining News
The decision comes on the same day a Brazilian court froze an additional 1 billion reais ($255 million) in assets as possible compensation for damages related to a recent evacuation of the area around the company's Vargem Grande dam in Minas Gerais state.
Currently there are no set of universal rules defining exactly what a tailings dam is, how to build one and how to care for it after it is decommissioned.
The world’s biggest iron ore producer said the injunction will impact production at its massive Brucutu mine, as it will now take longer than expected to bring it back on line.
The preventive measure was taken after a stress test failed to guarantee stability of the mine’s structures. Vale noted it would restart production when new studies are completed and their results are conclusive.
The world’s iron ore producer has faced continued backlash from Brazilian authorities since the deadly mining dam accident that killed around 300 people in January.
The International Council on Mining and Metals (ICMM), a London-based industry group representing 27 companies, is setting an independent panel of experts to develope a global standard for tailings facilities to be enforced to its members.
The decision was made in light of a possible failure of five dams at both complexes, which are located in Minas Gerais, the same state where the Feijão mine dam collapsed last month.
Four people from the German consulting group Tüv Süd, company that certified the safety of Vale’s dams, were also detained.
About 700 people were evacuated from two towns located near tailings dams operated by Vale and ArcelorMittal on mounting fears after last month's breach at Brumadinho, the country's deadliest mine disaster.
Brucutu, which has an annual capacity of 30 million tonnes of iron ore, is Brazil's second largest mine, behind Vale’s Carajás.
The argument is being harshly criticized by experts and locals, who believe the law-enforced audible could have saved lives.
Funds expected to be used as compensation for the victims of last week’s tailing burst, which killed at least 99 people.
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.
“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"
“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.