Brazilian mining giant Vale will pay nearly $ 7 billion in deal on Brumadinho dam breach

The agreement with Minas Gerais, announced Thursday, is the largest in the country’s history, according to local media. The Minas Gerais Court of Justice mediated the agreement, which will provide resources for the affected communities, emergency relief and resources for urban mobility.

In January 2019, a dam containing wastewater from Vale’s (VALLEY) The iron ore mine in the municipality of Brumadinho burst, burying the workers’ cafeteria and dozens of homes under a toxic wave of sludge. It also polluted local rivers.
Minas Gerais, a state whose name means “mines in general”, is a mining hub in southeastern Brazil. The 2019 disaster occurred after the rupture of another mining dam in the state in November 2015, flooding the small village of Mariana and killing 19 people.

“Vale is committed to fully repairing and indemnifying the damages caused by the Brumadinho tragedy and to increasingly contributing to the improvement and development of the communities where we operate,” said CEO Eduardo Bartolomeo in a statement.

The Brumadinho dam in Brazil was certified as 'stable' weeks before it collapsed
In 2016, mining company Samarco – a joint venture between Vale and BHP Billiton (BBL) – reached an agreement with the Brazilian government to pay up to 24 billion reais ($ 6.2 billion) for the Mariana dam breach.

The disasters, which left thousands of families in mourning, renewed the scrutiny of company practices and environmental regulations in Minas Gerais.

Vale said that since the last violation, two years ago, the company has tried to work “with affected families, providing assistance to restore their dignity, well-being and livelihoods”.

“In addition to meeting the most immediate needs of the people and regions affected, it is also working to deliver projects that promote lasting change to restore communities and benefit the population effectively,” the company said in its statement.

– Marcia Reverdosa, Sheena McKenzie and Michelle Toh contributed to this report.

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