Vale stops operations at nine more dams after auditors’ report

Under-fire Brazilian miner Vale has closed another nine sites across the country, it said today, over two months since a disaster which is thought to have killed over 300 people.

Vale said that external safety experts had failed several of its dams, including one at the Corrego do Feijao mine where another dam burst in January with deadly consequences.

It came as part of a review of around 90 of its sites across the country, to evaluate their safety, Vale said.

“Vale is working with its technicians and international experts to conclude complementary assessments to guarantee that the model used by external auditors is adequate, while planning reinforcement measures to increase these structures safety factor,” it added.

Earlier today the firm said that a court in Nova Lima had granted prosecutors’ requests to freeze 1bn Brazilian reals (£197m) in Vale assets to ensure that locals who were forced to evacuate from the danger area beneath another dam are compensated.

“Additionally, the court ordered the company to refrain from any action to construct, operate, alter and/or use the Vargem Grande dam, as well as to adopt certain measures to ensure the stability and safety of the dam and other structures of the mining complex where it is located,” Vale said.

Despite the news, the company’s shares were trading up 3.4 per cent in the morning Brazilian time.

Vale has faced several court orders since January when the dam burst, leaving hundreds either dead or missing.

It has already suspended operations at seven other sites, the firm said today.

Late last week another mining waste dam run by miner Metalmig burst in Rondonia state. No one is thought to have died, however seven bridges were destroyed and 100 families were left stranded, O Globo reported.