Vale knew deadly dam had heightened risk of collapse – Reuters – Vale S.A. (NYSE:VALE)

Vale (NYSE:VALE) knew last year that the mining waste dam in Brazil that collapsed last month had a heightened risk of rupturing, according to Reuters, which cites an internal document it says is the first evidence that the company was concerned about the safety of the specific dam.

The document dated Oct. 3, 2018, shows Vale classified Dam 1 at the Córrego do Feijão mine in Brumadinho as 2x more likely to fail than the maximum level of risk tolerated under the company’s own dam safety policy, Reuters reports.

Vale’s internal report placed the Brumadinho dam within an “attention zone,” saying it was necessary that “all prevention and mitigation controls are being applied,” Reuters says.

ine other dams in Brazil, out of 57 that were studied, were also placed in the “attention zone,” according to the report.

An analysis provided by the company that inspected the dam had warned of a high risk of failure if the dam did not drain water properly but ultimately certified the facility was stable.


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