By Brazil Stock Guide – The government of Minas Gerais has fined Vale SA (VALE US) R$1.7 million and ordered the suspension of operations at two of the company’s mines after environmental damage linked to recent spills in the state’s central region.
The measures were imposed by the state’s Secretariat for Environment and Sustainable Development following incidents reported on Sunday at the Fábrica and Viga mines, located in the municipalities of Ouro Preto and Congonhas. Authorities said the suspensions will remain in place until the company demonstrates that environmental risks have been eliminated and effective control measures have been adopted.
At the Viga mine, the halt applies to the entire operation. At the Fábrica mine, activities were suspended specifically at pit 18. The penalties were issued under a 2018 state decree governing environmental infractions, including pollution and delays in reporting environmental accidents.
The agency also ordered Vale to immediately carry out emergency measures, including cleaning affected areas and implementing actions to prevent further sediment runoff. The company must begin monitoring surrounding water bodies and submit a recovery plan detailing measures such as riverbank cleaning and dredging to restore impacted waterways.
According to environmental inspectors, both sites showed drainage system failures that were exacerbated by heavy rainfall in central Minas Gerais. At the Fábrica mine, an estimated 262,000 cubic meters of water mixed with sediments overflowed, reaching internal areas of steelmaker CSN (CSNA3 BZ) and causing silting in tributaries of the Maranhão River, including the Ponciana and Água Santa streams.
At the Viga mine, inspectors identified a natural slope failure in the mining area, resulting in sediment being carried into the Maria José stream and the Maranhão River. Authorities said technical assessments are ongoing to determine the full extent of the environmental impact.
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