Minas Gerais state prosecutors and the state’s attorney general office (AGE) have filed a public lawsuit requiring, among other things, a BRL 1 billion ($178.7 million) asset freeze on Vallourec Brazil, following the overflow of its Lisa dike, an iron ore dam structure.
The overflow at the dike followed the suspension of iron ore activities by several Brazilian companies in Minas Gerais state, including Usiminas-owned MUSA, Vale and Companhia Siderurgica Nacional (CSN), due to intense rainfalls.
Prosecutors and AGE requested the asset freeze to make sure Vallourec Brazil would pay for eventual damages caused by the dam’s overflow. This weekend, the National Mining Agency (ANM) raised the risk level of Vallourec Brazil’s Lisa iron ore dam to three from two, but on Monday, the regulator reduced the risk level back to two.
Prosecutors said the asset freeze request is yet to be analyzed by a judge.