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Vale S.A. (VALE)

  • Yesterday, 6:48 PM
    • Brazilian officials say the government will file suit Monday against Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP) and their joint venture Samarco for 20B reais ($5.3B) in response to this month's mining dam disaster.
    • The Attorney General's office says the 20B reais is a preliminary figure and could be raised over the judicial process.
    • The proceeds from the civil suit are intended to create a fund to help recovery efforts in the Rio Doce, the river that was contaminated with mud and mining waste in the wake of the Nov. 5 collapse of Samarco’s dam in Minas Gerais.
    • The pending lawsuit would represent by far the biggest government response to the disaster.
    • Earlier: BHP sinks after UN dam spill accusations
    | Yesterday, 6:48 PM | 16 Comments
  • Wed, Nov. 25, 9:18 AM
    • Grupo BTG Pactual is lower by 20% in Brazilian trade after its billionaire founder and CEO Andre Esteves was arrested as part of the investigation into the pay-to-play scheme between a group of builders and Petrobras (NYSE:PBR). Police also detained the government's leader in the Senate, Delcidio Amaral, on suspicion of harming the probe.
    • The action's "take the Petrobras probe to a whole new level," says Nicholas Spiro at Spiro Sovereign Strategy. "The scandal is becoming more debilitating by the day."
    • PBR -4.7%, EWZ -4.1%, VALE -2.8% premarket
    | Wed, Nov. 25, 9:18 AM | 8 Comments
  • Tue, Nov. 24, 9:57 AM
    • The price of iron ore has dropped to its lowest level in at least seven years, Financial Times reports, but share prices of the world's top iron ore suppliers are higher in early U.S. trading: BHP +1%, RIO +0.4%, VALE +0.2%.
    • The price of iron ore for China delivery hit $43.4/metric ton, a record low going back to 2008, amid slowing demand for steel in China and oversupply from the big miners.
    • Through October, China's YTD steel output fell 2.2% Y/Y to 675M metric tons, while October output was down 3.1% Y/Y at 66M metric tons.
    • Commodities specialist Andy Xie predicts iron ore prices will fall below $40 before year-end, and could sink as low as $30 for much of next year.
    | Tue, Nov. 24, 9:57 AM | 4 Comments
  • Tue, Nov. 24, 7:59 AM
    • The 2.2B cf torrent of mud and debris unleashed by the dam burst at Samarco's iron ore mine in southeastern Brazil has reached the Atlantic Ocean.
    • The mud flowed downstream into the Doce River, where it devastated wildlife and compromised the drinking water source for hundreds of thousands of people; Brazil's Environment Minister predicts it may take up to 30 years to get rid of the toxic sludge from the Doce basin.
    • Eleven bodies have been found since the dam burst on Nov. 5, but only seven of them have been identified; 12 people are still missing.
    • At BHP’s annual meeting in Perth on Friday, protesters called on the company to do more to help with clean-up efforts, and Vale's (NYSE:VALE) headquarters in Rio de Janeiro has seen regular protests, but the government also has come in for strong criticism for the laxity of the dams’ inspection regime and Brazil’s weak environmental legislation.
    • Photos
    | Tue, Nov. 24, 7:59 AM | Comment!
  • Fri, Nov. 20, 11:48 AM
    • A U.S. District Judge dismisses Rio Tinto's (RIO -0.4%) lawsuit accusing Vale (VALE -0.6%) and others of conspiring to misappropriate its mining rights in Guinea's Simandou region, which contains some of the world's most valuable iron ore deposits.
    • Rio said in its April 2014 lawsuit that Vale had conspired with Israeli billionaire Beny Steinmetz and his company, BSG Resources, to steal its rights over the northern half of Simandou, but the judge rules that Rio waited too long to file the lawsuit after losing the mining rights in December 2008.
    | Fri, Nov. 20, 11:48 AM | 4 Comments
  • Thu, Nov. 19, 3:37 PM
    • Vale (VALE -1%) says it will close its nickel smelting and refining operations in Thompson, Manitoba, in 2018, but will continue mining and milling despite the plunge in the price of nickel.
    • Vale says it will finish its feasibility study for Footwall Deep, an extension of the current Thompson ore body, in Q1 2016, and then will put the project on pause to await better prices.
    • Vale plans to ship nickel from its mine at Voisey's Bay, Newfoundland and Labrador, to a new processing facility at Long Harbour in the same province, instead of to Thompson and to Sudbury, Ontario.
    | Thu, Nov. 19, 3:37 PM | 8 Comments
  • Wed, Nov. 18, 6:15 PM
    • Samarco, the joint mining venture owned by BHP Billiton (NYSE:BHP) and Vale (NYSE:VALE), says two more of its tailings dams in Brazil could be at risk of collapsing and that it is taking emergency measures to stabilize pressure levels at the at-risk dams.
    • Company officials say both dams are operating with “safety factors" lower than those recommended for maintaining equilibrium between the dam’s structure and pressure from the wastes that could cause it to rupture.
    • Officials are still trying to add up the economic and environmental costs of the Samarco dam burst almost two weeks ago that sent a huge wave of water and mining waste crashing into villages and farms many miles downstream in the Brazilian states of Minas Gerais and Espirito Santo.
    | Wed, Nov. 18, 6:15 PM | 5 Comments
  • Wed, Nov. 18, 3:49 PM
    • Brazil stocks are mostly higher and the real is a top gainer among the world's currencies after the Congress upheld Pres. Rousseff’s vetoes of legislation that would have substantially increased spending at a time the government is trying to shore up its budget and prevent a credit rating downgrade.
    • By approving the vetoes, lawmakers granted Rousseff a rare political victory in a year when Congress has voted mostly against the administration.
    • "The votes were a positive sign for markets, although it is a bit early to say that the tide has changed for Brazilian assets," says a currency manager at TOV Corretora de Cambio in Sao Paulo.
    • PBR +3.9%, PBR.A +3.8%, VALE +3.3%, EBR +2.6%, ELP +3%, CIG +2.9%, CPL +4.7%, SBS +3.9%, BSBR +2.8%, BBD +3.4%, ITUB +2.6%.
    | Wed, Nov. 18, 3:49 PM | 11 Comments
  • Mon, Nov. 16, 6:28 PM
    • The Samarco joint venture of BHP Billiton (NYSE:BHP) and Vale (NYSE:VALE) behind the Brazil dam burst that killed as many as 11 people earlier this month has agreed to set aside 1B reais ($262M) to fund initial cleanup efforts, public prosecutors say.
    • The amount comes on top of 250M reais ($66.2M) in fines levied by Brazil's federal environmental regulator last week.
    • Brazilian authorities and the companies are only beginning to work out the costs of the disaster; Deutsche Bank, for one, estimates the companies' final bill could top $1B.
    • Credit Suisse says Samarco has a $1.17B insurance policy for “operational risk," but Vale says costs and fines as a result of the dam burst already have exceeded insurance against civil damages.
    | Mon, Nov. 16, 6:28 PM | 4 Comments
  • Mon, Nov. 16, 2:55 PM
    • BHP Billiton (BHP +0.4%) says it is reviewing two other mining joint ventures in Peru and Colombia following the dam disaster at the Samarco iron ore mine in Brazil, which it jointly owns with Vale (VALE -1.7%).
    • Cerrejón in Colombia is one of the world's largest open pit coal mines, and is owned equally by BHP, Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY); BHP and Glencore each have 33.75% stakes in Antamina, Peru's biggest copper and zinc mine, while Teck Resources (TCK +0.8%) holds 22.5% and Mitsubishi 10%.
    • Vale says it will take several years for the Rio Doce river to recover after it was flooded with mud from a burst tailings dam run by Samarco, a joint venture between Vale and BHP Billiton
    • Costs and fines already incurred as a result of the dam burst have exceeded insurance against civil damages, a Vale executive says.
    | Mon, Nov. 16, 2:55 PM | 4 Comments
  • Mon, Nov. 16, 8:43 AM
    | Mon, Nov. 16, 8:43 AM | 4 Comments
  • Fri, Nov. 13, 7:59 AM
    • In an update on the Samarco dam burst, BHP Billiton (NYSE:BHP) says mine tailings now extend 440 km (273 miles) downstream through remote mountain valleys from the mine site in Brazil's Minas Gerais state.
    • Local authorities say 637 people have been evacuated and 11 communities affected, with 19 people still missing; nine fatalities have been confirmed.
    • BHP's shares slipped below A$20 in early trading but recovered modestly after BHP released its update, but if the stock ends at current levels, it would be its lowest close since early 2005 - wiping out all gains created during China's economic boom and demand for minerals.
    | Fri, Nov. 13, 7:59 AM | 14 Comments
  • Thu, Nov. 12, 2:58 PM
    • Brazil Pres. Rousseff announces preliminary fines worth 250M reais ($66.2M) against the Samarco mine where two waste dams burst, killing at least seven people and causing widespread destruction.
    • Rousseff says the fines, imposed by Brazil's environmental regulator for violations including river pollution and damages to urban areas where water service has been suspended, could be followed by penalties from other federal or state agencies.
    • The Brazilian president used her toughest language yet in comparing the disaster to the 2010 BP oil spill and citing the joint venture partners BHP Billiton (BHP -2.5%) and Vale (VALE -2%) by name as responsible for the consequences.
    | Thu, Nov. 12, 2:58 PM | 8 Comments
  • Thu, Nov. 12, 2:13 AM
    • Brazil is increasingly concerned over the rising death toll and contaminated mud flowing through two states as a result of BHP Billiton (NYSE:BHP) and Vale's (NYSE:VALE) dam disaster.
    • "If federal fines are applicable, we will apply them," Environment Minister Izabella Teixeira told reporters. "There will be punishment, and under Brazilian law the environment has to be repaired."
    • Her remarks are the strongest yet from the government, which was caught off-guard by the dam failure which killed at least eight people and left more than 20 missing.
    • Previously: BHP, Vale CEOs coordinate Brazil dam breach response (Nov. 11 2015)
    | Thu, Nov. 12, 2:13 AM | 9 Comments
  • Wed, Nov. 11, 5:41 PM
    • The CEOs of BHP Billiton (NYSE:BHP) and Vale (NYSE:VALE) made their first public appearance today in Brazil at the scene of the dam at their jointly owned subsidiary that burst and unleashed a deadly avalanche of mud and water.
    • BHP's Andrew Mackenzie and Vale's Murilo Ferreira offered no explanation of what might have caused the disaster and said their current priority is to save lives and comfort victims; Ferreira said the causes of the accident would be fully investigated afterward.
    • The CEOs say they will support the Samarco joint venture in creating an emergency fund for rebuilding works and to help the affected families and communities.
    • Ferreira declined to answer questions about whether his company had been dumping its own mine waste into Samarco’s dam system before it broke, as has been suggested by Brazilian prosecutors and local officials.
    | Wed, Nov. 11, 5:41 PM | 4 Comments
  • Wed, Nov. 11, 10:39 AM
    • It is too soon to quantify with certainty the financial toll of the Brazilian dam disaster for BHP Billiton (BHP -2.4%) and Vale (VALE -2.9%), but Deutsche Bank estimates the companies’ bill could top $1B and Morgan Stanley says the costs could be anywhere from "tens of millions to hundreds of millions."
    • The limited liability company, Samarco, the two companies set up years ago for protection from litigation does little to shield its parents from big fines, cleanup and legal costs, Brazilian authorities and lawyers say; BHP and Vale say Samarco - not them - are responsible for the mine’s operations.
    • If Samarco itself can’t cover the cleanup and legal costs, the Brazilian government can “go after the assets of the shareholders, Vale and BHP,” according to an environmental lawyer who has represented people affected by pollution in Minas Gerais, the state where the dam breach occurred.
    • Earlier: Prosecutor cites negligence in Brazil dam failure
    | Wed, Nov. 11, 10:39 AM | 4 Comments
Company Description
Vale SA is a metals & mining company. It produces & supplies iron ore, iron ore pellets, nickel, manganese ore, ferroalloys, copper, coal, phosphates, potash, cobalt & others.
Industry: Steel & Iron
Country: Brazil