Vallourec Brazil, the local subsidiary of French-based pipe maker Vallourec, was fined by Minas Gerais state due to a dam overflow this week, a government-run news agency said on Wednesday.
According to Agencia Minas Gerais, a state-run news website, the company was fined at BRL 288 million ($52.05 million) for visible and immediate damages caused by the overflow at the company’s Lisa iron ore dam.
The structure is located at the company’s Pau Branco iron ore mine, in the city of Nova Lima, Minas Gerais state. The incident was aggravated by risks it posed to human health, damages to property as well as because it blocked a local road.
Authorities also suspended activities at the dam until Vallourec Brazil can prove the structure is safe.