Vale to set aside $1.4 billion for Brumadinho damages
A Brazilian court has ruled that Vale (NYSE: VALE) must present 7.9 billion reais ($1.47 billion) in guarantees by July 23 related to last year’s Brumadinho dam disaster, the company said on Wednesday.
This amount would ensure the enforcement of any potential fine or forfeiture of assets, rights and values related to the disaster, the company said in a filing, adding that it will appeal the decision.
In May, a judge in the state of Minas Gerais ordered Vale to present guarantees, but another court decision suspended that ruling in June.
Also in May, the city of Brumadinho suspended Vale’s operating license after health agents said that the company’s onsite activities have “not respected the rules of social isolation.”
A Minas Gerais state court in Brazil later revoked the decree after the company argued that the suspension was issued to avoid the spread of the new coronavirus, but had the main purpose of serving as retaliation for non-payment of emergency aid to the entire population of the city.
The Córrego do Feijão mine’s tailings dam collapsed in January 2019, killing 270 people.
($1 = 5.3674 reais)
(With files from Reuters)