Vale Reaches $7bn Settlement Over Deadly Dam Collapse in Brazil
upstart writes in with an IRC submission:
Vale reaches $7bn settlement over deadly dam collapse in Brazil:
Vale SA reached a settlement agreement with Brazilian authorities for a dam collapse that killed 270 people and led to production cutbacks that stripped the company of the title of world's biggest iron ore producer. Its shares rose.
The deal comes two years after the Brumadinho disaster, giving affected communities a clear framework for compensation and reparations and removing a considerable legal overhang for Vale shareholders.
Vale will pay 37.7 billion reais ($7.03 billion) including cash payments to affected people and investments in environmental projects, the Rio de Janeiro-based company said in a statement. Vale estimates it will book an additional expense of 19.8 billion reais in 2020 results.
[...] The two sides come together after Vale initially presented a value of about 21 billion reais, while the state of Minas Gerais outlined 28 billion reais in material damages plus 26 billion reais in moral damages.
[...] With Vale benefiting from high iron ore prices, the Brumadinho settlement isn't expected to jeopardize any of its investment plans, according to Ativa Investimentos. Iron ore futures climbed 73% last year on strong Chinese demand.
Vale shares extended gains on the back of the news after trading was halted for more than half an hour in Sao Paulo. The stock was up 2.1% at 10:57 a.m. local time compared with a 0.6% advance for the Ibovespa.
Previously: Brazil Dam Collapse: Hundreds Missing after Mining Disaster
Read more of this story at SoylentNews.