Brazilian mining giant Vale will pay nearly $ 7 billion in settlement due to the split of Brumadinho Dam

The settlement with the Brazilian state Minas Gerais, which was announced on Thursday, is according to local media the largest in the country’s history. The Court of Justice of Minas Gerais mediates the agreement, which will provide funds for affected communities, first aid and resources for urban mobility.

In January 2019, a dam containing wastewater Vale’s (VALE) iron ore mine in the city of Brumadinho burst and buried the workers’ cafeteria and dozens of houses under a toxic tidal wave. It also polluted local rivers.
Minas Gerais, a state whose name is ‘general mines’, is a mining hub in southeastern Brazil. The 2019 disaster occurred after another mining dam in the state erupted in November 2015, flooding the small town of Mariana and killing 19 people.

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

The Brumadinho Dam in Brazil was certified 'stable' weeks before it collapsed
In 2016, the 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) over the collapse of the Mariana Dam.

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

Vale said the company had been trying since the latest offense two years ago to work with “the families affected to restore their dignity, well-being and livelihood.”

“Apart from providing for the most immediate needs of the people and regions concerned, it is also delivering projects that promote lasting change to restore communities and benefit the population effectively,” the company said in a statement.

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

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