Vale Probe Could Lead to Fine of 20% of Revenue From 2018
- Brazil mining regulator investigates Brumadinho dam collapse
- Probe looking into Vale relations with auditing companies
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Brazil’s mining authorities have started a probe into Vale SA over a possible cover-up regarding safety procedures that could lead to a fine of up to 20 percent of its 2018 gross revenue.
The country’s mining secretary, Alexandre Vidigal de Oliveira, said in an interview that he requested an investigation into whether the company colluded with auditors to mislead authorities over the risk assessment of the mining rejects dam that collapsed near Brumadinho in the state of Minas Gerais. If convicted under Brazil’s anti-corruption law, the maximum penalty could be around 25 billion reais ($6.6 billion) based on estimates of preliminary 2018 data. By contrast, the mining code sets a 3,000 reais limit for fines.