Vale to pay $55.9M in SEC settlement over dam disclosures

SEC building

Brazilian mining company Vale agreed to pay $55.9 million to settle Securities and Exchange Commission (SEC) charges it issued false and misleading statements regarding the safety conditions of its dams.

Vale, one of the world’s largest iron ore producers, hid in public disclosures filed with the SEC between October 2016 and December 2018 evidence that its dams, most notably its Brumadinho dam, did not meet safety standards, according to the agency’s complaint published last April. The Brumadinho dam collapsed in January 2019, killing 270 people.

The settlement, announced Tuesday, is subject to approval by the U.S. District Court for the Eastern District of New York. Vale would pay a $25 million penalty and disgorgement and prejudgment interest of $30.9 million.

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