Mining Dams in Brazil are still not safe to operate
A Brazilian prosecutor claims Vale still has not done enough to secure its dams.
Despite two major fatal mining accidents since 2015, Vale (NYSE: VALE) has still failed to meet some security pledges signed with authorities to prevent a third disaster, a Brazilian federal prosecutor told Reuters. Vale continues to operate 29 dams for mining waste, which pose an increased safety risk, according to Edison Vitorelli, a member of a task force of federal and prosecutors who brought charges against the company following the recent catastrophe that killed 270 people in January 2019 to have. Some of the dam-connected mines that the Task Force believes are unsafe are critical to Vale's plans to reclaim lost iron ore production and expand capacity to 450 million tons / year. The company states that it holds regular meetings with prosecutors and auditors, addresses potential risks promptly, and meets all of its obligations on time. The task force earlier this month requested the removal of Vale's security executives and the appointment of an outside expert to reshape the company's security strategy and culture; a judge is expected to rule on the application early next month.