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:


BHP urges miners to create global body to oversee tailings dams

BHP, the world’s largest mining company, urged peers to create an independent international body in charge of overseeing the construction, integrity and operations of tailings dams, which storage mining waste, following the second collapse of a dam in Brazil in the past three years.

Iron ore differentials narrow on supply pressure

Portside discounts for Fortescue Metals' 56.5pc Fe super-special fines (SSF) have dropped below 20pc to the Argus 62pc PCX portside index on 15 February, the narrowest in recent months, and may contract further as supply keeps high-grade prices under pressure.

Vale evacuates 200 people from town near its Mar Azul mine

Brazilian mining giant Vale (NYSE:VALE) issued a statement on Saturday saying that it had ordered the evacuation of some 200 people residing or working in 49 buildings that are located near its Mar Azul mine, in Nova Lima, Minas Gerais.

Fire shuts down Vale’s Malaysia distribution center

Iron ore mining giant Vale (NYSE:VALE) issued a statement Friday advising that there was a fire in one of the transfer houses of the belt conveyor system at its distribution center in Malaysia.

Eight Vale employees arrested in Brazil as part of dam collapse probe

Eight employees of the Brazilian mining giant Vale (NYSE:VALE) were arrested on Friday as part of an ongoing criminal investigation into the deadly dam disaster in the town of Brumadinho, which killed at least 166 with over a hundred still missing.

Heart-shaped diamond found in time for Valentine’s Day

The world's top diamond producer by output, Alrosa (MCX:ALRS), found a heart-shaped rough diamond at the Udachnaya kimberlite pipe in Yakutia, eastern Russia.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners