Vale's stock plunges 24,5% and loses over R$70 billion in market value after tragedy.

SAO PAULO (Reuters) - Vale's shares closed down more than 20 percent on Monday, the worst daily performance in its history and equivalent to a loss of 72,8 billion reais in market value, following the tragedy of the collapse of one of the company's mining dams in Brumadinho (MG), which has so far left 60 people dead and almost 300 missing.

Shares of the mining company closed down 24,52 percent, at 42,38 reais, dragging down the Ibovespa, the benchmark of the Brazilian stock market, which closed down 2,29 percent. The volume of shares traded was the highest since Vale's debut on the stock exchange. In financial terms, it was the highest turnover of Monday's trading session, totaling 8,15 billion reais.

Initial reports from mining industry analysts recommended caution regarding stocks given the cloudy outlook ahead due to potential repercussions from the disaster, which occurred just over three years after a dam belonging to Samarco – a joint venture between Vale and BHP – collapsed in Mariana, Minas Gerais, leading to 19 deaths and polluting the Doce River.

Analysts Leonardo Correa and Gerard Roure, from BTG Pactual, stated that they were "truly surprised" by the event, citing that, since the Samarco accident, Vale has invested in a series of measures to inspect and ensure that existing operations are safe.

Since the Brumadinho dam collapse on Friday, Vale has already faced four court-ordered asset freezes and two other sanctions from administrative bodies totaling 12,1 billion reais, according to a survey conducted by Reuters on Monday.

The mining company also suspended its shareholder remuneration policy, which in practice means no payment of dividends or interest on equity.

By Paula Arend Laier