Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Brazil’s comptroller general (CGU) has alleged in a report that Vale corrupted the “integrity” of the federal inspection system in the Brumadinho case.
The collapse of the dam at Vale’s Corrego do Feijao in mine in Brumadinho in 2019 left 270 dead and ravaged nearby forests, rivers and communities.
The report, signed on March 18, was used by CGU in August to fine the mining company in R$86.3 million ($17.7 million). Four years after the disaster, the criminal case remains pending in the Minas Gerais court.
The CGU says that Vale reportedly falsified documents to “altering or preventing” government supervision in the case.
“Corrupting the integrity, logic and robustness of a federal inspection system, as the illicit acts of the legal entity Vale S.A did”, stated the CGU, as reported by Metropoles.
“Corruption is not just the practice of bribery and kickbacks, on the contrary, it is much broader. Lato sensu [in a broad sense], includes any fraudulent way or ethical deviation to achieve something in an illegal or immoral way, ” said the agency.
“It is clear that Vale’s attitudes, in omitting and failing to insert information in a real way in the documents presented to the ANM (National Mining Agency), are characterized as fraud,” the report reads.
Vale said that it disagrees with the decision and will present a request for reconsideration within the next 10 days.
