Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Metals

Court finds Vale liable for dam burst damage but caps charges

Electric Power | Nuclear | Natural Gas | Oil | Crude Oil | Metals | Steel

Market Movers Europe, Oct 14-18: Oil markets focus on Putin's Saudi Arabia visit; Brexit looms over carbon market

Oil

Platts Market Data – Oil

Commodities | Metals | Non-Ferrous | Aerospace & Defense | Autos & Capital Goods | Materials | Building & Construction | Transportation

Aluminum Symposium 2020

Metals | Steel

Mexican government official optimistic of USMCA ratification by year's end

Court finds Vale liable for dam burst damage but caps charges

London — A Brazilian court has declared miner Vale liable for carrying out repairs arising from damage caused by the burst of an iron ore tailings dam at Corrego do Feijao in Minas Gerais state in the country's southeast, Vale said in a statement Wednesday. However, the court has removed impediments to Vale's future operation, the company added.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The judge at the 6th branch of the Public Property court in Minas Gerais maintained a previous ruling which blocks BRL11 billion ($2.9 billion) of Vale's financial resources to cover the costs of repairs. However, it has substituted BRL 5 billion of this for financial guarantees and insurances, effectively returning BRL5.5 billion of cash back to Vale.

The court also acknowledged Vale's cooperation with courts and state and federal level authorities following the January 25 tailings dam disaster which claimed nearly 300 lives.

"Significantly, the court denied requests from the prosecutors for the suspension of Vale's activities and judicial intervention of the company as the court ruled that there are sufficient guarantees to compensate the damages," noted Edward Sterck, analyst at BMO Capital Markets, pointing to the positive nature of the ruling for Vale.

Sterck added that Vale had previously made a provision for $4.9 billion for costs related to the dam burst, comprising $3 billion for repairs and penalties and $1.9 billion for decommissioning of upstream dams.

-- Diana Kinch, newsdesk@spglobal.com

-- Edited by Joe Innace, newsdesk@spglobal.com