A Brazilian Minas Girais state judge has accepted charges of homicide against Vale SA former Chief Executive Fabio Schvartsman and 15 others related to the disaster at the iron ore miner’s Brumadinho tailings dam a year ago that killed 270 people. Prosecutors allege Vale, Brazil’s largest mining company, and German inspection firm TÜV SÜD systematically and intentionally hid information about safety issues at its tailings dams for years.
Brazilian iron ore miner Vale SA said will boost provisions to decharacterise upstream tailings dams by $671 million after conducting engineering studies following a disaster at its Brumadinho mining site last year. The charge, to be taken against Q4 earnings, includes a series of revisions including reclassifying two dams previously categorised as having been built by the “center-line” method to the upstream structure considered to be more unstable, the company said in a regulatory filing.
Brazilian state prosecutors on Tuesday charged Fabio Schvartsman, the former chief executive of mining giant Vale SA, and 15 other people with homicide for a dam disaster last year that killed more than 250 people. Vale and TUV SUD were also charged with environmental crimes. The collapse of the Vale tailings dam in the town of Brumadinho was one of the world’s deadliest mining accidents and knocked $19 billion off Vale’s market value in a single day. Vale shares were down 2.5% in Sao Paulo yesterday trade.