(Adds company comment, background)
WASHINGTON, March 28 (Reuters) - Brazilian mining firm
Vale SA agreed to pay $55.9 million to settle charges
related to allegedly false and misleading disclosures about the
safety of its dams prior to a 2019 dam collapse in Brazil that
killed 270 people, the U.S. Securities and Exchange Commission
said on Tuesday.
The U.S. regulator sued Vale in April, alleging the company
manipulated dam safety audits, obtained fraudulent stability
certificates and misled local governments, communities and
investors with its environmental, social and governance (ESG)
disclosures.
A Vale dam in the Brazilian town of Brumadinho burst in
January 2019, unleashing a river of toxic mining waste that
crushed a dining hall and destroyed parts of the nearby
countryside.
Vale, one of the world's largest producers of iron ore,
allegedly knew for years that its Brumadinho dam did not meet
internationally recognized standards for dam safety, the SEC
said in the lawsuit.
In a statement, Vale said it settled the charges without
admitting or denying the SEC claims. "Vale continues with its
commitment to remediate and repair the damage caused by the dam
collapse in Brumadinho in 2019," it said.
The settlement must be approved by the U.S. District
Court for the Eastern District of New York.
(Reporting by Eric Beech
Editing by Chris Reese)
Messaging: eric.beech.reuters.com@reuters.net))
