Brazil state eyes at least $5.3bn Vale SA compensation deal on Brumadinho dam burst



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Brazil state eyes at least $5.3bn Vale SA compensation deal on Brumadinho dam burst

Late on Wednesday, a senior official of the Brazilian state of Minas Gerais said that the state had been brewing off an option to seize as many as $5.3 billion in liabilities under a compensation deal with the Rio de Janeiro-based Brazilian multinational miner Vale SA over a deadly dam burst in Brumadinho in 2019 that killed more than 270 people.

Apart from that, latest remarks from the top official of the Brazilian state of Minas Gerais came forth a day before the state and Vale SA officials are scheduled to meet in a bid to reach a resolution over the sum which Vale SA must deliver under a compensation deal, while a court hearing was expected as early as by late January, the state’s Secretary General Mateus Simoes said late in the day.

Minas Gerais seeks $5.3 billion in compensation deal on Brumadinho dam burst

In point of fact, back in the January of 2019, a Vale SA dam in Brumadinho had been met with a disastrous burst, leading to a death of more than 270 people, while state-backed alongside Government inquiries had found that there had been alleged negligence on maintenance of the Vale SA dam, which eventually had made the Rio de Janeiro-based Brazilian miner a potential subject to billions of dollars in claims and liabilities.

Meanwhile, as the state Government of Minas Gerais had reported damages worth of roughly $5.3 billion in material and moral damages related to Brumadinho-burst in a court filing, the state Secretary General Simoes said in an interview with a press agency shortly before the onset of a meet between the state and Vale SA officials over financial terms of the compensation deal, “The idea is that we end the text discussion tomorrow and start the value discussion.

Certainly, the floor for the beginning of the negotiations has to be 28 billion reais. In tandem, while being asked over the compensation deal, a Vale SA spokesman said, “There is still no definition of values, but the company remains committed to fully repairing the affected and impacted communities.