Vale reaches $7 billion Brumadinho settlement with Minas Gerais state

Thursday, 04 February 2021 20:44:28 (GMT+3)   |   Sao Paulo

Brazilian miner and iron ore producer said on Thursday it has reached a $7 billion (BRL 37.68 billion) settlement over the Brumadinho disaster.

The $7 billion deal was signed the court reparation agreement with the state of Minas Gerais, the state’s Public Defender’s Office, as well as both state and federal prosecutors. It includes socioeconomic and socioenvironmental projects, which include attending the needs of the affected communities, and payments to help locals cover their expenses post-Brumadinho. Vale is also expected to fund environmental projects to recover the affected areas.

The company said it expects to include an one-time BRL 19.8 billion ($3.6 billion) expense on its 2020 full-year results.

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