NON-FERROUS   Iron Ore  

Vale's management team on thin ice as spill fallout snowballs

As the death toll continues to rise from a fatal accident at a dam owned by Vale SA, the Brazilian miner’s top management is coming under increased criticism in the highest levels of government.

"There must be punishment," Vice President Hamilton Mourao told reporters in Brazil’s capital on Monday, adding that "if there was any malpractice, recklessness or negligence on the part of someone inside the company, this person has to answer criminally."

Mourao didn’t rule out suspending members of Vale’s board while authorities investigate the dam break in Minas Gerais state that has killed at least 60 people with hundreds still missing. It is the second deadly mining disaster involving Vale in only about three years and the company has come under intense scrutiny since images of death and destruction began flooding the airwaves on Friday.

While Vale has taken steps in recent years to shield itself from state intervention, the government is still indirectly the company’s largest shareholder through a Banco do Brasil pension fund, known as Previ. As Brazil’s largest exporter and a producer of raw materials, Vale is heavily reliant on key agreements with the government like railway concessions, mining licenses, and favorable foreign policy.

Vice President Mourao isn’t alone in his rush to penalize. Prosecutor General Raquel Dodge said Monday that Vale directors could be punished. On Sunday, Renan Calheiros, a candidate for Senate president, tweeted that he supported the dismissal of Vale’s top executives.

The Brazilian miner was a partner in the mine and was able to sidestep some of the blame, pinning the responsibility somewhat on the venture’s management. Its partner BHP Group also helped shoulder some of the blame.

Vale didn’t immediately respond to requests for comment.

Most Vale executives are relatively new, taking office after Chief Executive Officer Fabio Schvartsman was hired in 2017. The only executives kept on by Schvartsman include Chief Financial Officer Luciano Pires and Peter Poppinga, Vale’s head of iron ore. Poppinga took over the ferrous metals division in 2015. Later that year, Vale’s Samarco Mineracao SA joint venture suffered a tailings dam rupture and Poppinga was targeted in a criminal probe as he sat on the JV’s board of directors.

So far, no Vale or Samarco executives have been convicted of criminal wrongdoing. Both civil lawsuits were also suspended as the company struck a deal with authorities. For some, only a few days into the aftermath of the latest spill, searching for scapegoats seems premature.

"This management is relativity new, blaming this administration seems like an over reaction’,” André Rocha, mining analyst and manager at JBI. “Before pointing out fingers we need to see what happened first.”

News No: 3477
Date: 2019/01/29 - 17:18
News Source: MINING.COM

Vale  Brazilian miner  BHP  JBI 


Leave a Comment:


SQM to acquire 80% interest in Revelo's copper projects in Chile

Revelo Resources (TSXV: RVL) and Sociedad Química y Minera de Chile (NYSE: SQM) signed this week an exploration option agreement under which the latter can acquire up to an 80% interest in Calvario and Mirador, two of Revelo's copper-focused projects in northern Chile.

Iron ore price rally could give BHP, Rio Tinto 30% earnings boost

Spot iron ore prices rose from $75 per tonne to $95 per tonne in the weeks following the Brumadinho dam disaster at Vale’s (NYSE: VALE) Feijao iron ore mine in Brazil, before settling in at about $85 per tonne, according to the latest research on the global iron ore market by the Macquarie Group.

How Much Iron Ore Supply Disruption is Expected in CY19 - SteelMint Analysis

As per SteelMint analysis, amidst the disruption and additions by global iron ore producers and exporters, the iron ore market for the year is expected to witness a shift against market demand and supply in CY18.

Vale says BSG ordered to pay it $1.25B

SAO PAULO – Vale SA said on Tuesday a London arbitration court had ordered BSG Resources Limited to pay the iron ore miner $1.246 billion related to a dispute between the companies over a joint venture in Guinea.

Investors with $10 trillion in assets pressure miners over tailings safety

The Investor Mining & Tailings Safety Initiative has requested that over 600 resource companies, including major miners, reveal the safety records of their waste storage facilities, following the collapse of Vale’s Brumadinho dam in Brazil in January, which killed hundreds.

China: Iron Ore Index Jumps After Vale Cuts Sales Estimate

Spot iron ore fines Fe 62% index has today jumped by almost USD 3.2/MT against yesterday and closed today at USD 87.05/MT, CNF China.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners