After the devastating dam break in a retention basin for mining waste in the Brazilian state of Minas Gerais, the Brazilian judiciary has frozen the eleven billion Reals (€2.6 billion) on the accounts of the company to Vale for possible compensation payments. In addition, the company was fined by the state and by the Federal state with the first penalties in the amount of 81 million euros.
It is the second dam break in Brazil within a few years. Until today, the country is suffering from the environmental disaster that triggered the collapse of a further dam three years ago in Minas Gerais – whose operator Samarco was a subsidiary of Vale, and the Australian-British group, HP.
at that Time, 19 people were killed, the toxic mudslide ended up in the river Rio Doce, and later on in the 650 kilometres away in the Atlantic ocean. Until today, Vale and BHP pay billions for the devastating dam break, and many victims still waiting for compensation. This time, the damage to the environment is apparently low, but the number of victims could number in the hundreds.
Vale was founded in 1942 in Minas Gerais as Companhia Vale do Rio Doce. Until 1997 it was state-owned. Today, Vale is the world’s largest mine operator in iron ore and the third largest mining company, after the Australian-British companies BHP and Rio Tinto.
in addition to iron ore, the Brazilian company is Nickel, copper, and other metals, and owns hydroelectric power plants and rail networks, ports, and vessels for the delivery of its products. Worldwide it employs of 76,500 people. Its market value is at 78.7 billion dollars (69,04 billion euros).
expert calls for more dams “doubtful or untenable”
in 2017, earned Vale a profit of $ 5.5 billion and a turnover of 34 billion dollars. Net this means an increase of 38 percent compared to the previous year’s result – a first indication that the business after a slump in the commodity prices in 2015, has recovered. The crisis had forced Vale to significant cost savings.
According to the mining experts Luiz Jardim Wanderley of the Federal University of Rio the Janeiro is a company tend to be in times of falling commodity prices in General, “to reduce their Budgets for safety and maintenance”. Of the 450 dams in Minas Gerais there is, therefore, a “relatively high number”, the state “was doubtful or untenable,” he told the AFP news Agency.
The 1976-built, and 86-metre-high disaster the dam was decommissioned, and demolition is provided. Vale asserts, an inspection of the TÜV Süd had identified in September, no complaints. Also in the case of a further inspection in January and no defects had been found.
More about
Brazil the risk of a further dam break
transfixed On his Website, Vale reiterated its “passion for people and the planet”. Include the targeted company values the principle “life is most important” and “do the Right thing”. (AFP)
