off-the-wire

Vale to book extra $500M provision for Fundao dam obligations

Kitco Media
By Reuters
Published:
Updated:
Reuters
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Brazilian miner Vale said on Friday that it estimates an additional provision of about $500 million in its 2025 financial statements to cover obligations linked to the Fundao dam disaster.

The announcement followed an English High Court decision that considered BHP liable under Brazilian law for the failure of the Fundao dam in Mariana, southeastern Brazil, which was owned and operated by BHP and Vale’s Samarco joint venture.

The company said in a securities filing that it expected cash outflows tied to the agreement to remain in line with the guidance disclosed in its third-quarter earnings release. It had already recognized a provision of $2.401 billion for obligations under the agreement in Brazil, it added.

(By Isabel Teles)

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