Vale has been ordered to pay $1.5bn in damages for the dam burst in Brumhadino, Brazil.
Brumadinho courts granted the Public Prosecutor’s Office of the State of Minas Gerais—which is suing Vale for interfering with site inspections—a preliminary injunction that requires the Brazilian company to pay the penalty within 10 day.
In a statement, Vale said it intends “to repair the damage caused by the dam rupture of the Córrego de Feijão mine.” The company’s mining activities in the city have been shelved since January 2019.
Last week, the Brumadinho regional government suspended Vale’s operating license in the city after health inspectors discovered the company had not been adhering to social distancing protocols the government mandated in the wake of the COVID-19 pandemic.
Vale revised its 2020 production guidance to 310-330mn mt of iron ore fines, 35-40mn mt of pellets, and 360,000-380,000mt of copper. The company’s nickel production, excluding its New Caledonia mine, is expected to reach 180,000-195,000mt. The company is negotiating with Australia’s New Century Resources to sell 95pc of its stake in New Caledonia. Vale recently announced it will recover 44mn mt of halted capacity by next year.