By Brazil Stock Guide – Vale SA (VALE3 BZ; VALE US) regained its operating permit in the municipality of Congonhas, Minas Gerais, after complying with requirements imposed by the local government following a mine overflow caused by heavy rainfall earlier this year.
The municipal authorization was restored after the company addressed risks and damages associated with the overflow that affected mining structures in the region during intense rains in January.
As part of the administrative measures imposed by the city, Vale paid a fine totaling 13.71 million reais ($2.7 million) related to the incident.
Despite the permit restoration, the company is still unable to resume mining operations in Congonhas. Activities remain suspended under orders from Brazil’s National Mining Agency (ANM) and the Minas Gerais State Secretariat for Environment and Sustainable Development.
In addition to regulatory restrictions, injunctions issued by state and federal courts continue to block operations at the site.
The company must obtain clearance from regulators and the judiciary before restarting activities in the municipality.
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