Vale negotiating funds for state in Brumadinho disaster

The failure of the tailings dam at Vale’s Córrego do Feijão mine swept the town of Brumadinho and killed 270 people. (Image of the aftermath by Diego Baravelli, Wikimedia Commons).

Iron ore miner Vale and the government of Brazil’s Minas Gerais state are negotiating an agreement to settle damage claims stemming from the 2019 Brumadinho dam disaster involving the injection of billions of reais into funds to be managed by the state government.

The talks on Wednesday focused on the governance of those funds, and would be followed by another stage of negotiations focused on the value of the settlement, sources close to the talks told Reuters.

The company said in a statement that the talks at a judicial conflict resolution center had advanced on “relevant points” and that no numbers had been discussed.

“Vale remains committed to building a global agreement with the government of Minas Gerais and the judicial institutions involved in the mediation process,” it said.

It was agreed at the meeting that the company will extend emergency repair payments until Jan. 31, 2021. A new meeting is expected to take place on Dec. 17, Vale said.

About 270 people died in January last year when the tailings dam collapsed.

(By Luciano Costa and Roberto Samora; Editing by Christian Plumb and Christopher Cushing)



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