Criminal charges to have limited effect on Vale

Thursday, 23 January 2020 23:56:59 (GMT+3)   |   Sao Paulo

Vale’s criminal charges by prosecutors this week should have a limited effect in the company, according to analysts from Itau BBA.

Minas Gerais state prosecutors charged on Wednesday Vale’s former CEO, Fabio Schvartsman, and 15 other people with murder, including several other Vale and TUV SUD executives. TUV SUD was the company attesting the failing Brumadinho dam’s stability.

Although prosecutors said this week ongoing audits might result in further capacity halts at Vale, Itau BBA analysts said “no significant (activity) halts” are expected at Vale, and the company’s strategy should also remain untouched.

Itau BBA analysts also said it is unlikely for Vale to change the already set provisions to aid the Brumadinho victims.

“Besides that, we believe prosecutors charges yesterday won’t impact Vale’s plans to resume halted operations,” analysts said.

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