Investors continue to press mining companies one year after Brumadinho disaster

February 16, 2020

Brumadinho_flickr

 

 One year after the devastating dam collapse at Vale’s Feijao Mine in Brumadinho, Brazil, Mercy Investment Services and fellow investors continue to press mining companies for changes to ensure the safety of residents and communities in the future. 

In engagements with shareholders, Vale has reported

 

  • it is settling reparations claims where the individuals are legally represented; 
  • families whose homes were destroyed are now in new homes; 
  • both upstream and downstream tailings dams at all facilities are being redone.

 

Shareholders continue to monitor Vale’s efforts to bring 17 more dams into compliance with new, stricter International Council on Mining and Metals guidance. The company has more than 1,000 people working to improve conditions in Brumadinho where ‘dirty’ water is still flowing in the river. Vale also has sped up the decommissioning of upstream dams in Brazil that were dedicated to iron ore tailings.

 

Through the Mining and Tailings Safety Initiative, investors have developed the following expectations for the mining industry:

 

  • Zero Harm to People
  • Net-Zero Impact on the Environment
  • Community Voices Must Be Heard
  • Implementation of the Global Standard: Best Practice as the Minimum Standard
  • Public Reporting and Transparency & Independent Global Monitoring

 

 

Mercy Investment Services holds a minimal number of shares in Vale, allowing Mercy to have a voice with the company, particularly in situations such as these. Mercy continues to monitor Vale’s response in Brumadinho and its compliance with these expectations.