The government of Minas Gerais increases the fine against Vale to R$ 3,3 million for environmental damage.
Valor already takes into account the "recurrence of the mining company in a similar situation" that occurred in August 2023 in Brumadinho.
Reuters - The government of Minas Gerais announced this Friday that it has increased the fine against Vale to R$ 3,3 million for environmental damage caused by what the mining company called an "overflow" of water with sediment at facilities near the cities of Ouro Preto and Congonhas.
The amount already takes into account "the mining company's repeated occurrence in a similar situation" that happened in August 2023 in Brumadinho, the Minas Gerais government stated in a press release.
Last Sunday, drainage system failures, exacerbated by heavy rains, led to the "overflow" of 262 cubic meters of water with sediment at the Fábrica mine in Ouro Preto, resulting in the silting up of waterways that feed into the Maranhão River, the government of Minas Gerais stated.
Furthermore, at the Viga mine in Congonhas, there was a "natural slope failure in the mining area," stated the state government, "with the release and transport of sediments to the Maria José stream and the Maranhão River."
Vale expects to release its fourth-quarter and 2025 results on February 12. In the third quarter, the company had a net profit of US$2,7 billion, an increase of 11% compared to the same period in 2024.
The state government stated that it has suspended activities at both mines as a preventative measure. In the case of the Viga mine, the suspension applies to the entire operation, while at the Fábrica mine, the suspension is specific to activities in pit 18.
According to analysts at Santander, the two suspended mines have a combined production of 8 million tons of iron ore per year, or the equivalent of 2,4% of Vale's average forecast volume for 2026.
