The US Securities Exchange Commission (SEC) has notified Brazilian iron ore producer Vale regarding a potential probe it might launch into the company, Vale said late this week.
The miner was notified of allegedly violations of US securities laws regarding Vale’s disclosures about its dam safety management as well as about its Brumadinho dam. Vale said the so-called Wells notice isn’t a formal accusation, however, it could ultimately result in an investigation carried out by US SEC. Vale said the notice would give Vale an opportunity to show its point of view over the matter.
“If the (US) SEC decides to authorize an action against Vale, (it) … could seek an injunction against possible violations of U.S. federal securities laws, the imposition of civil monetary penalties, disgorgement, and other relief within the SEC’s authority in a lawsuit filed in a federal court,” Vale clarified in a statement.
Vale has opposed SEC’s recommendation and said it would respond within this Wells notice process.