Brazilian mining company Vale has agreed to pay $55.9 million to settle a US investigation accusing it of misleading the disclosure of safety factors in its dams, one of which collapsed in Brazil in 2019.
In January 2019, a dam in one of the Company’s iron ore mining mines in Brazil collapsed, killing at least 260 people due to mudslides.
The US Securities and Exchange Commission said in a statement that Vale agreed to settle the charges against it last April, related to its accusation of publishing false and misleading data about the safety of its dams before 2019.
The complaint says the collapsed dam did not comply with international safety requirements, even though Vale Company assured investors they had safety certificates.
The settlement, which still needs to be approved by the District Court for the Eastern District of New York, requires Vale to pay a $25 million civil fine, plus $30.9 million in pre-trial interest, and pledge not to violate the agency’s rules.