{"id":1096591,"date":"2019-01-28T18:16:19","date_gmt":"2019-01-28T18:16:19","guid":{"rendered":"http:\/\/www.mining.com\/?p=965963"},"modified":"2019-01-28T18:16:19","modified_gmt":"2019-01-28T18:16:19","slug":"brazil-securities-regulator-probes-vales-filings-on-dam-collapse","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1096591","title":{"rendered":"Brazil securities regulator probes Vale\u2019s filings on dam collapse"},"content":{"rendered":"

The Brazilian Securities and Exchange Commission (CVM) has launched a probe into mining giant Vale SA’s filings related to the mining dam collapse in the town of Brumadinho, where\u00a0the\u00a0collapse\u00a0of a dam<\/a> at the company\u2019s C\u00f3rrego do Feij\u00e3o mining complex on Friday killed\u00a0at least 60, while more than 300 missing people feared dead.<\/p>\n

According to local newspaper Valor Economico<\/em><\/a>, CVM is investigating whether Vale responded fast enough to the tragedy in terms of releasing related information it had available. The first reports of the dam burst came after 1 p.m. on Friday and the company’s first securities filing disclosing the rupture was issued after 3:30 p.m., the article says.<\/p>\n

\"Tragic<\/p>\n

Image: @deputadoadelmo | Twitter.<\/a><\/em><\/p>\n<\/div>\n

Vale (NYSE:VALE) shares nose-dived at the start of trading Monday amid a wave of investment bank downgrades, as fines and penalties began to mount.<\/p>\n

The stock dropped 21.5% on the Sao Paulo stock exchange, wiping out about $18 billion in market cap.<\/p>\n

Adding to the financial uncertainty surrounding the company, the iron ore giant suspended Monday its dividend, share buyback program and bonus payments to top executives in the wake of the deadly dam burst in the Brazilian state of Minas Gerais.<\/p>\n

\"Vale<\/p>\n

Media were urged not to use drones to avoid collisions with rescue helicopters. (Photo: ABC News via @MidiaNINJA.<\/a><\/em>)<\/p>\n<\/div>\n

This is the second major tragedy Vale has been involved in about three years. In 2015, another dam at the Samarco mine<\/a> jointly owned by the company and BHP burst, killing 19 people and causing Brazil’s worst environmental disaster.<\/p>\n

While the Samarco disaster dumped about five times more mining waste, Feij\u00e3o’s dam break has already killed more people, as the torrent of sludge hit Vale’s local offices, including a crowded cafeteria, and tore through a populated area downhill.<\/p>\n

Rescue efforts were suspended about 10 hours Sunday because of fears that a second mine dam in the same area<\/a> was at risk of failing. An estimated 24,000 people were told to evacuate.<\/p>\n

\"Tragic<\/p>\n

Image: Portal R7.com | Twitter.<\/a><\/em><\/p>\n<\/div>\n

By Monday, Minas Gerais fire department officials had confirmed at least 60 people dead, according to the Associated Press. Since nobody was recovered alive Sunday, they fear that among the hundreds who are still missing there will be very few survivors.<\/p>\n

Brazil’s President Jair Bolsonaro\u00a0flew over the devastated zone on Saturday,\u00a0later tweeting<\/a>\u00a0that it was \u201cdifficult to not be emotional before this scene\u201d. He said all efforts were being made to care for survivors and \u201cdetermine the facts, to demand justice and prevent new tragedies.\u201d<\/p>\n

The same day, the country\u2019s National Mining Agency on Saturday ordered Vale to suspend operations at the mine and Minas Gerais state prosecutors entered a motion to freeze 5 billion reais ($1.3 billion) in the company’s accounts for handling damages. It’s expected that more funds will be frozen in days to come.<\/p>\n

Raquel Dodge, Brazil\u2019s prosecutor-general, said on Monday that Vale needed to be \u201cseverely\u201d punished when it comes to paying compensations and that its executives could face criminal charges.<\/p>\n

\"Vale<\/p>\n

Before and after. (Courtesy of Estado en Minas | Twitter.<\/a><\/em>)<\/p>\n<\/div>\n

Analysts said the impact of this accident on Vale finances as hard to assess given that the storage area had been inactive and certified as safe by independent auditors.<\/p>\n

\u201cThe fact that this is an old and unused facility raises questions around how much culpability lies with Vale if the dam did indeed satisfy regulatory requirements,\u201d said Edward Sterck, analyst at BMO Capital Markets. \u201cAt the same time, one should question the implications for the pricing of systemic risk within the mining industry, especially with regard to legacy assets constructed to historical norms.\u201d<\/p>\n

The Feij\u00e3o mine is part of Vale’s southern system operations, which is made up of three mines and two ports and accounts for about a quarter of the company’s iron ore output.<\/p>\n

The post Brazil securities regulator probes Vale\u2019s filings on dam collapse<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Monday, local officials had confirmed at least 60 people dead and said they fear hat among the hundreds who are still missing there will be very few survivors.<\/p>\n

The post Brazil securities regulator probes Vale’s filings on dam collapse<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[404,369,440,703],"tags":[19,294,71],"class_list":["post-1096591","post","type-post","status-publish","format-standard","hentry","category-mining-news-and-commentary","category-miningcom","category-south-america","category-vale","tag-brazil","tag-iron-ore","tag-latin-america"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1096591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1096591"}],"version-history":[{"count":5,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1096591\/revisions"}],"predecessor-version":[{"id":1096806,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1096591\/revisions\/1096806"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1096591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1096591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1096591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}