Vale to Defend Against $20 Billion Compensation Request for 2015 Dam Disaster

By Jeffrey T. Lewis

SÃO PAULO--Brazilian iron-ore miner Vale said Thursday it intends to defend itself against a reported request for compensation of about $20 billion for a 2015 dam collapse that killed 19 people.

The dam that failed was owned by Samarco Mineração, a 50-50 joint venture between Vale and BHP Billiton Brasil. Brazilian news organization Valor Economico reported Wednesday that the states of Minas Gerais, where the dam was located, and Espirito Santo, which is downstream from the dam, along with Brazil's federal government have asked a court for 100 billion reais in damages from Samarco and its owners.

Vale said Thursday it hasn't yet been informed by authorities of the request. The company said it will present its position and its defense during the legal process at an opportune time. Vale said it remains committed to repairing the damage caused by the collapse of the dam.

The tragedy, at a town called Mariana, preceded the deadlier 2019 collapse of a dam owned by Vale, in a town called Brumadinho, also in Minas Gerais state. The Brumadinho disaster killed 270 people.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

October 19, 2023 08:32 ET (12:32 GMT)

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