Vale Ordered to Freeze $260 Million in Funds for Disaster Compensation

Brazilian courts have ordered iron ore mine operators Vale to freeze $260 million in funds to compensate locals impacted by the January dam disaster at the Corrego do Feijao mine, which killed 300.

According to reports, Vale must also provide lodging, shelter, maintenance and food to those displaced by the disaster. The collapse was the second in three years involving Vale. The company had previously ben forced to close its Timbopeba mine, which produced 12.8 million tons of iron ore each year. Brazilian authorities are also seeking around $13 billion for environmental restoration.

The aftermath of the dam collapse has led to sweeping changes, as Brazil’s National Mining Agency banned building of new upstream dams and ordered all current ones decommissioned by 2015.

Posted on March 19, 2019 at 10:07 am

Categories: News


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