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Money News

Brazilian state says Vale's $4 billion dam offer is too low

Pictures of victims are seen during a ceremony to mark one year of the disaster of the tailing dam owned by Brazilian mining company Vale SA in Brumadinho, Minas Gerais state, Brazil January 25, 2020. REUTERS/Cristiane Mattos/Files

SAO PAULO (Reuters) - Brazilian miner Vale SA’s proposed settlement of around 21 billion reais ($3.97 billion) following a deadly 2019 dam disaster is too low, the head of the state of Minas Gerais, where the accident happened, said.

After a meeting between authorities and the company about the Brumadinho dam burst in January 2019 that left 270 people dead, the state’s Secretary General Mateus Simoes told journalists the state opposed both the amount and some of the terms offered by Vale.

“The value is still far from what we expect,” the secretary said late on Tuesday. “We also don’t agree with some terms set by Vale”.

A further meeting has been scheduled for Dec. 9 and will focus on terms, rather than values, Simoes said.

Vale, which has not disclosed the values involved in the negotiations, did not immediately respond to a request for comment.

On Monday, the company said it would continue to “have a constructive dialogue” with authorities.

($1 = 5.2926 reais)

Reporting by Luciano Costa; Writing by Sabrina Valle; editing by Barbara Lewis

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