Vale is accused in the US of misleading investors about dam safety

The SEC (Securities and Exchange Commission), which regulates the stock market in the United States, accuses Vale of misleading investors about the safety of its dams in the years leading up to the tragedy in Brumadinho (MG), which left 277 dead in January 2019

According to the indictment, Vale had been “manipulating dam safety audits, obtaining numerous fraudulent certificates of stability and regularly deceiving local governments, communities and investors” since 2016.

The agency also alleges that the mining company has known for years that the Brumadinho dam, which burst leaving a trail of destruction, did not meet international safety standards.

“However, Vale’s Sustainability Reports and other public documents assured investors that the company operated in accordance with ‘the strictest international practices’ in assessing dam safety and that 100% of its dams were certified as stable,” the SEC says. .

The indictment, which was filed in the New York court, was already expected by Vale. In its balance sheet for the first quarter of 2022, released this Wednesday (27), it informs that “it expects that the SEC will initiate proceedings against the company, alleging violations of US capital market legislation”.

“Vale believes that its disclosures and statements did not violate US law and will vigorously contest such allegations,” he added. According to the statement, the investigation could result in the imposition of fines, monetary restitution and other compensation.

This Thursday (28), in a conference with analysts, the company’s Executive Vice President of Finance and Investor Relations, Gustavo Pimenta, reinforced the assessment. “It was expected, after recent news,” he said. “We’re going to contest that claim.”

In a statement released by the SEC on Thursday, the director of the agency’s Enforcement Division, Gurbir S. Grewal, says that investors rely on information disclosed by companies to decide where to invest their funds.

By allegedly manipulating this information, he says, Vale has undermined investors’ ability to assess the risks inherent in its actions.

Enforcement Division Associate Director Melissa Hodgman says in the statement that the indictment shows that the SEC will “aggressively protect our markets from wrongdoers, no matter where they are located.”