Vale calls Brumadinho deal estimates “speculative”

Monday, 23 November 2020 20:27:43 (GMT+3)   |   Sao Paulo

Brazilian miner and iron ore producer Vale called market estimates for a potential Brumadinho deal as “speculative,” the company said in a Friday document filing at Brazilian securities exchange commission, CVM. The government of Minas Gerais state seeks a multi-billion dollar settlement, which hasn’t been reached yet.

“The value of a potential agreement must consider a lot of economic aspects, including on-going and future payments (by Vale),” the miner said.

Estimates suggest the deal could reach as much as BRL 28 billion ($5.4 billion). Recently, Morgan Stanley said Vale could make a Q1 2021 provision of over $4 billion (BRL 21.7 billion) for Brumadinho-related expenses.

Vale said it maintains a positive dialogue with the state of Minas Gerais as well as other state and federal entities. It also said those conversations seek a potential deal that would benefit Minas Gerais state.

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