Vallourec Tubos do Brasil SA, also known as Vallourec Brazil, will earmark BRL 200 million ($37.1 million) to cover for the damages caused by a company’s dam overflow in January this year.
Minas Gerais state prosecutors, and the state’s Attorney General's Office (AGE), signed a preliminary agreement with the company late this week, prosecutors said. The deal sets the terms of compensation and the company’s obligations to assure the stability and safety of its Cachoeirinha stockpile near its Lisa dam, which overflew this month due to intense rainfalls.
Vallourec Brazil agreed to present an emergency plan as well as an execution plan in up to 20 days. Prosecutors said the $37.1 million will serve as an “emergency guarantee” to “assure” the payment of certain measures the company are expected to comply with, well as to “reimburse” state institutions for expenses related to the incident.
The company should also present in five days a safety and monitoring plan near a road, which was particularly hit by the dam overflow. Vallourec Brazil could pay fines of BRL 200,000 ($37,054) per day, limited to 30 days, if it fails to meet the agreement’s terms.