Brazilian mining company Vale suspends production as death toll rises from dam disaster

At least 84 people killed following the collapse of the company’s dam in Brumadinho, Minas Gerais

Brazilian miner Vale will cut production by 10 per cent and close further iron ore mines after the collapse of a dam on Friday that has killed at least 84 people.

A further 300 people are still missing, five days after what is already Brazil’s worst ever industrial incident, according to the global mining workers’ union IndustriALL.

On Tuesday, Vale chief executive Fabio Schvartsman said 10 further dams similar to the one which failed near Brumadinho will be taken offline in an attempt to prevent further catastrophic collapses.

A vast torrent of sludge swept over roads, destroying buildings in its path on Friday. The death toll is expected to rise further as the rescue and cleanup operation continues

Suspending production will cost the world’s biggest iron ore miner around 5bn reais (£1bn) over three years, Mr Schvartsman said. The news boosted shares in rival firms, including Rio Tinto, Anglo American and BHP, on Tuesday morning.

Two senior managers at the mine Corrego do Feijao were arrested on Tuesday along with a third Vale official and two engineers working for German subsidiary TUV SUD.

The tragedy comes just three years after another Vale dam jointly operated with BHP Billiton collapsed, killing 19 people in nearby Samarco and causing Brazil’s worst ever environmental disaster.

On Monday, state police searched Vale’s premises at its Aguas Claras Mine, seizing documents.

IndustriALL general secretary Valter Sanches said Vale had failed to learn from the past.

“And now its workers are paying the ultimate price with their lives,” he said. “There can be no more excuses. It’s time for Vale to listen and take real action to improve safety.

“The Brazilian authorities must shut down all companies’ operations with tailings dams until they are rigorously inspected.”

On Monday, Vale’s legal team began the first phase of the internal investigation to determine the cause of the accident. Preliminary results were shared with federal and state authorities, the company said.

Vale has appointed longtime employee Claudio Alves as the leader of its immediate response group to consolidate emergency actions.

Vale’s general counsel, Alexandre D’Ambrosio, said in a statement the company’s board would do “whatever possible to mitigate the suffering of those affected and their families”.

He added: “Vale is the most interested party in determining the causes of the breach.

“Even before issuing the arrest warrant, I have been to a meeting with the federal and state prosecutor’s office in Minas Gerais to reinforce Vale’s commitment to the determination of the facts.”