Investors Ask How Vale Failed to Stop Repeat of Dam Disaster
- More than 300 people are still missing after Friday’s collapse
- S&P put Vale on CreditWatch, as officials seek damages
This article is for subscribers only.
Vale SA investors must be asking themselves how the world’s largest iron ore producer could allow an even more deadly repeat of Brazil’s worst environmental disaster.
The collapse of a tailings dam Friday in the state of Minas Gerais killed 58 people, with more than 300 still missing, and destroyed buildings. It’s the second deadly disaster in about three years for Vale, which also co-owns the Samarco mine that spewed billions of gallons of waste into a community. The Samarco incident resulted in 19 deaths and wiped over $3 billion off of Vale’s market value over two weeks and the company has yet to reopen that mine.