Brazil court reinstates charges against former Vale CEO

Brazil’s top court has reinstated criminal charges against former Vale (NYSE: VALE) CEO Fábio Schvartsman over the 2019 Brumadinho dam collapse, reversing a lower court decision that had dismissed the case.

Federal prosecutors successfully appealed to the Superior Court of Justice (STJ) after a regional court in Minas Gerais ruled there was insufficient evidence to keep Schvartsman as a defendant. 

Prosecutors argued the record contains extensive documentation showing the former executive failed to act despite known risks tied to the Córrego do Feijão tailings dam. The STJ agreed, finding the lower court overstepped its jurisdiction in granting habeas corpus relief.

“There is robust evidence that imputes to Fábio Schvartsman the assumed risk of death due to the dam’s instability,” the Federal Public Prosecutor’s Office said, adding the executive had a duty to prevent the disaster. Lawyer Pablo Martins, representing victims’ families through Avabrum, said the ruling means Schvartsman will again stand trial alongside other defendants.

The decision raises the number of accused in the criminal case to 16, including former Vale employees and representatives of German consultancy TÜV SÜD, which certified the dam’s safety. 

The collapse on Jan. 25, 2019 killed more than 250 people and wiped about $19 billion off Vale’s market value in a single day. 

Proceedings remain in the preliminary phase, with more than 160 witnesses scheduled to testify and hearings expected to run into next year, underscoring the scale and complexity of one of the world’s deadliest mining disasters.