The United States Markets Regulatory Commission (SEC) said today that Brazilian mining company Vale violated securities laws by making false and misleading disclosures about the safety of its dams before a 2019 disaster that killed 270 people in Brumadinho (MG). ).
Beginning in 2016, Vale rigged dam safety audits, obtained fraudulent certificates of stability and misled local governments, communities and investors with its environmental, social and governance (ESG) disclosures, the SEC said.
When contacted, Vale did not immediately comment on the matter.
In January 2019, the company’s dam in the mining town burst, releasing a tidal wave of mining waste that crushed a company cafeteria and destroyed parts of communities.
Vale, one of the world’s largest iron ore producers, reportedly knew for years that its Brumadinho dam did not meet internationally recognized standards for dam safety, the SEC said.
The SEC complaint, filed in federal court in New York, accused Vale of violating anti-fraud and reporting provisions of US securities laws.
Vale’s shares began to plummet on the news of the SEC’s accusations.
