Brazilian state rejects Vale’s US$4B offer for dam disaster

The head of the Brazilian state of Minas Gerais, where Vale’s (NYSE: VALE) Brumadinho dam collapsed in January 2019 leaving 270 people dead, has rejected the miner’s proposed settlement of around 21 billion reais (US$3.97 billion).

Minas Gerais’ Secretary General Mateus Simoes told local paper Isto e Dinhero the state opposed both the amount and some of the terms offered by Vale.

According to Simoes, the amount offered does not even cover the material damages caused by the accident, which the state estimates at 26 billion reais (US$4.9 billion).

Minas Gerais is requesting 54.6 billion reais (US$10.3 billion) in compensation, a figure that includes relocation and psychological damage suffered by survivors and the victims’ families.

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