Vale reaches $7bn settlement over deadly dam collapse in Brazil:
Vale SA reached a settlement agreement with Brazilian authorities for a dam collapse that killed 270 people and led to production cutbacks that stripped the company of the title of world's biggest iron ore producer. Its shares rose.
The deal comes two years after the Brumadinho disaster, giving affected communities a clear framework for compensation and reparations and removing a considerable legal overhang for Vale shareholders.
Vale will pay 37.7 billion reais ($7.03 billion) including cash payments to affected people and investments in environmental projects, the Rio de Janeiro-based company said in a statement. Vale estimates it will book an additional expense of 19.8 billion reais in 2020 results.
[...] The two sides come together after Vale initially presented a value of about 21 billion reais, while the state of Minas Gerais outlined 28 billion reais in material damages plus 26 billion reais in moral damages.
[...] With Vale benefiting from high iron ore prices, the Brumadinho settlement isn't expected to jeopardize any of its investment plans, according to Ativa Investimentos. Iron ore futures climbed 73% last year on strong Chinese demand.
Vale shares extended gains on the back of the news after trading was halted for more than half an hour in Sao Paulo. The stock was up 2.1% at 10:57 a.m. local time compared with a 0.6% advance for the Ibovespa.
Previously: Brazil Dam Collapse: Hundreds Missing after Mining Disaster
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Brazil Dam Collapse: Hundreds Missing after Mining Disaster:
As many as 200 people are missing after three dams operated by the mining giant Vale collapsed in the Brazilian state of Minas Gerais, releasing a wave of red mining waste and prompting fears of widespread contamination.
At least 50 people died in the disaster on Friday, Avimar de Melo, mayor of the nearby town of Brumadinho told the Hoje em Dia newspaper. "We don't have any more details because it's all happening very quickly," he said.
Brazilian television showed images of survivors being winched to safety by a helicopter after the disaster at the Feijão mine near Brumadinho, less than two hours from the state capital, Belo Horizonte.
Among those missing were 100 mine workers who were having lunch in an administrative area when it was hit by a torrent of sludge and water, said a fire brigade spokesman, Lieutenant Pedro Aihara.
"Our main worry now is to quickly find out where the missing people are," Aihara said on GloboNews cable television channel.
Videos shared on social media showed houses buried in the mud and local media reported that the nearby Inhotim outdoor art complex had been evacuated though not affected.
The dam collapse came less than four years after Brazil's worst environmental disaster was caused by the failure of a tailings dam at Mariana in the same state. That dam was operated by Samarco, which at the time of the disaster was half-owned by Vale.
"I don't have words to describe my suffering, my enormous sadness, my disappointment in what has just happened. It is beyond anything you can imagine," Vale's CEO, Fabio Schvartsman, said in an address on YouTube.
He said the company had made an "enormous effort" to make its tailings dams safe after the Mariana disaster. "The whole of Vale will do whatever is possible to help the people affected," he said.
Also at BBC and U.S. News & World Report.
(Score: 0) by Anonymous Coward on Friday February 05 2021, @09:59PM
n/t
(Score: 2) by bart9h on Friday February 05 2021, @10:31PM (1 child)
bem q o Landim poderia se inspirar e pagar logo as famílias dos 10 meninos :-(
(Score: 2) by aiwarrior on Saturday February 06 2021, @11:18PM
Who is landim? What 10 guys are you speaking about? I speak portuguese and this makes no sense.
(Score: 2, Informative) by vali.magni on Saturday February 06 2021, @08:19AM (1 child)
(Score: 2) by martyb on Sunday February 07 2021, @05:06AM
Wit is intellect, dancing. I'm too old to act my age. Life is too important to take myself seriously.
(Score: -1, Troll) by Anonymous Coward on Saturday February 06 2021, @02:14PM (2 children)
Seems excessive for Brazilians.
(Score: 0) by Anonymous Coward on Saturday February 06 2021, @03:21PM
They're getting off easy because they should be getting a brazillion dollars per death.
(Score: 0) by Anonymous Coward on Saturday February 06 2021, @03:33PM
It's ok, most of it won't be going to the peasants. It's for 'mitigation' of the 'environmental damage'. ie. going into the pockets of politicians and their cronies.