Vale resumes dividends 18 months after deadly dam disaster, Q2 profit soars

Brazilian mining giant Vale said on Wednesday it will resume dividend payments to shareholders, suspended since a deadly dam burst in January 2019, as it reported second-quarter profit rocketed amid a surge in iron-ore prices.

Disclosing the resumption in a securities filing, Vale said the decision came following the reduction of business uncertainties related to the novel coronavirus pandemic. "The worst is likely behind us," Vale said in a statement.

The dividend news, released after the close of share trading in Sao Paulo, was awaited by investors and analysts and may stoke market interest in the shares. But it may also bring fresh scrutiny from critics and victims’ groups who blame the firm for the Brumadinho dam failure, which killed 270 people.