Vale signs deal with Brazilian prosecutors to bolster tailings dam management

Brazilian mining giant Vale has signed an agreement with the attorney general's office in Minas Gerais state to implement measures to improve safety and transparency in the management of its tailings dams.

The unprecedented agreement "reinforces Vale's commitment, already assumed to its investors, of adhering to the best international practices in dam safety," Carlos Miana, Vale's director of de-characterization of dams and geotechnical projects, said in a statement. 

Tailings dams are a highly sensitive issue for miners in Brazil, particularly as international investment funds have raised their requirements for companies with respect to ESG practices. 

Brazil has seen two major disasters caused by collapsed dams in recent years. In 2015, one owned by iron ore pellet maker Samarco, a Vale-BHP joint venture, failed in Mariana, Minas Gerais state. A second then took place in 2019 in Brumadinho at an iron ore mine owned by Vale. Together the disasters caused around 300 deaths and led to serious environmental pollution.

The announcement of the agreement between Vale and the state attorney general came on the same day that the chairman of the UK's local authority pension fund forum (LAPFF), Doug McMurdo, began a two-week visit to Brazil to assess the impacts of the catastrophes and the measures adopted by companies to remediate the damage.

McMurdo plans to visit seven of the communities affected by the tailings dams disasters. During his time in Brazil, he is also expected to meet Vale chairman José Penido to talk about the company's initiatives. 

Last week, Vale announced that it has so far paid 22bn reais (US$4.3bn) for repairs and compensation for victims related to the Brumadinho tailings dam collapse. The company is also carrying out a program to close tailings dams.