By Brazil Stock Guide – Vale (B3: VALE3) said late Monday that it has suspended operations at its Fábrica and Viga units in Minas Gerais after receiving a formal notice from the municipality of Congonhas ordering the suspension of operating permits tied to those sites, following repeated incidents involving water overflow from its mining operations.
In a statement released Monday night, Vale said the municipal order also requires the adoption of emergency environmental control, monitoring and mitigation measures. The company said it has complied with the determination, halted operations at the affected units and will provide timely clarification on the actions demanded, while cooperating fully with the competent authorities.
The decision comes as Congonhas, in central Minas Gerais, recorded a new water leak at Vale mining sites on Monday (Jan. 26). According to images shared by local residents on social media, this was the second incident of its kind involving the company in less than 24 hours, intensifying scrutiny over the stability of water-retention structures linked to the operations.
The most recent overflow follows an incident early Sunday (Jan. 25), when water mixed with sediments escaped from a pit at Vale’s Fábrica mine in Ouro Preto and reached areas operated by another company in the region, including facilities belonging to CSN Mineração (B3: CMIN3). That event flooded warehouses, internal access roads, mechanical workshops and loading areas at the Pires unit. No injuries were reported.
Vale has repeatedly said that no people or surrounding communities were affected by either occurrence and stressed that the events are unrelated to any of its tailings dams. According to the company, all dams in the region remain stable, safe and under continuous monitoring 24 hours a day, seven days a week.
Municipal action adds to mounting regulatory pressure. Earlier on Monday, Brazil’s Ministry of Mines and Energy ordered the national mining regulator to intensify inspections, assess potential liabilities and coordinate with environmental and civil defense agencies. The involvement of municipal, state and federal authorities reflects the heightened sensitivity surrounding mining activity in Minas Gerais.
Despite the operational suspension at Fábrica and Viga, Vale said its production and financial guidance remain unchanged, as previously disclosed in its Reference Form.
The incidents unfolded days after the seventh anniversary of the 2019 Brumadinho disaster, which killed 270 people. Seven years later, any recurrence of water or sediment leaks — even when not linked to dams — continues to trigger swift intervention and elevated public scrutiny in Brazil’s main mining state.
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