BRAZIL
Vale expects to pay out $1.5 billion for Brumadinho reparations in 2023Reuters | January 18, 2023 |
The aftermath of Vale’s tailings dam collapse near Brumadinho.
(Photo by Romerito Pontes, Flickr)
Vale SA plans to pay out about 7.8 billion reais ($1.53 billion) in 2023 on reparations related to the collapse of a tailings dam in the mining town of Brumadinho, which happened four years ago at the end of this month, its director of Reparations and Territorial Development, Marcelo Klein, told Reuters.
The rupture of the structure unleashed a giant wave of mud that killed 270 people, most of them employees of the company, in addition to affecting communities, forests and rivers in the region. Three people are still missing, and the executive stressed that the search for them is a “top priority”.
Of the total amount planned for the year, 3.9 billion reais refers to the provision for an agreement reached with authorities, while 1.9 billion reais is related to Vale’s own projects. The remaining 2 billion reais will be invested in actions such as tailings management, dam monitoring, infrastructure renovation and maintenance, studies and project development, among others, Klein said.
“We can clearly see a slowdown in the payment of reparations, which is natural as four years went by, and an acceleration in the projects of the reparation agreement program,” he added.
Last year, the disbursements for Brumadinho were around 10.2 billion reais.
($1 = 5.0959 reais)
(Reporting by Marta Nogueira; Editing by Steven Grattan)
Vale SA plans to pay out about 7.8 billion reais ($1.53 billion) in 2023 on reparations related to the collapse of a tailings dam in the mining town of Brumadinho, which happened four years ago at the end of this month, its director of Reparations and Territorial Development, Marcelo Klein, told Reuters.
The rupture of the structure unleashed a giant wave of mud that killed 270 people, most of them employees of the company, in addition to affecting communities, forests and rivers in the region. Three people are still missing, and the executive stressed that the search for them is a “top priority”.
Of the total amount planned for the year, 3.9 billion reais refers to the provision for an agreement reached with authorities, while 1.9 billion reais is related to Vale’s own projects. The remaining 2 billion reais will be invested in actions such as tailings management, dam monitoring, infrastructure renovation and maintenance, studies and project development, among others, Klein said.
“We can clearly see a slowdown in the payment of reparations, which is natural as four years went by, and an acceleration in the projects of the reparation agreement program,” he added.
Last year, the disbursements for Brumadinho were around 10.2 billion reais.
($1 = 5.0959 reais)
(Reporting by Marta Nogueira; Editing by Steven Grattan)
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