Brazil’s Vale proposes increase of board, more mining execs
According to a securities filing on Thursday night, three board members will be independent and nine will be appointed by controlling shareholders.
According to a securities filing on Thursday night, three board members will be independent and nine will be appointed by controlling shareholders.
Vale SA estimates selling up to 75 million tonnes less iron ore this year, after several mines were halted following its second deadly dam burst in less than four years.
Vale posted fourth-quarter profit of $3.786 billion, compared with $771 million a year earlier.
For all of 2018, Vale's output was 384.639 million tonnes, slightly below its previously divulged outlook of 390 million tonnes.
The decision was based on ensuring compensation for those who may have suffered losses from the cessation of operations at Vale’s South Upper dam.
The world’s biggest iron ore producer said the injunction will impact production at its massive Brucutu mine, as it will now take longer than expected to bring it back on line.
The dam is located in the municipality of Barão de Cocais, in the southeastern Brazilian state of Minas Gerais.
Vale has been targeted by several court verdicts related to mines that use dams similar to the one that burst in the town of Brumadinho in January.
The preventive measure was taken after a stress test failed to guarantee stability of the mine’s structures. Vale noted it would restart production when new studies are completed and their results are conclusive.
A state prosecutor filed subpoenas with Vale last June to review safety documents regarding its dam, but Vale's lawyers later argued that they had received positive reviews by an auditor.