Court denies Vale’s appeal and maintains $1.4 billion in guarantees over Brumadinho

Court denies Vale’s appeal and maintains $1.4 billion in guarantees over Brumadinho

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A Brazilian court has denied Vale’s appeal against depositing BRL 7.9 billion ($1.4 billion) in cash to cover for guarantees over the Brumadinho iron ore waste dam burst, the miner said on Wednesday. Vale said it will appeal the decision to a higher court. The Brumadinho disaster killed 270 people.

In May this year, a court ordered Vale to deposit the $1.4 billion cash guarantees in a 10-day timeframe to cover for eventual fines related to corruption charges. Vale was able to get an injunction in June exempting it from paying the required cash deposit.

However, a new court decision reinstated the order. Minas Gerais state prosecutors argued in May that Vale used a pressure, retaliation and reward mechanism to “corrupt the dam certification” market. Prosecutors said at the time such a system made consulting and external audit companies hired by Vale to hide the serious instability of dams from official authorities.

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