Vale collapses more than 21% after Vale collapses

The actions of Vale suffered a 21.5% collapse in Sao Paulo operations. The company suspended the payment of dividends Sunday evening.

The Attorney General of Brazil, Raquel DodgeHe added that the company had to badume its responsibilities and be subject to criminal proceedings. The company's leaders may also have to shoulder their responsibilities personally, he said.

HSBC and Jefferies downgraded their recommendations for Vale's "pending" papers, while other badysts refrained from taking action, claiming that they were still trying to calculate the potential damages.

"In simple terms, it's the intangible (which is now incalculable) aspect of what worries us the most and in the end, the entire mining sector will have to rethink the current model", BTG Pactual badysts said in a note to customers.

"We must also expect a firm response from management to the investigation of all mining tailings dams in operation and we are not sure what the new production guide will look like.", added the badysts.

Dead and gone

The company was affected by the break-up of a mining dam in southeastern Brazil, which has already killed 60 people and 292 missing. The first part of the fourth day of search also indicates that after the incident, 382 people were located and 192 saved alive.

The disaster began on Friday when a Brazilian giant Vale dam broke, releasing an avalanche of mud and tailings covering part of the city and the structures of the complex located in Brumadinho, a town of 39,000 inhabitants 60 km from Belo Horizonte, the capital of Minas Gerais.

freezing

So far, Brazilian courts have ordered the freezing of R $ 11.8 billion ($ 3.1 billion) in the mining company's accounts in order to secure sufficient resources to finance rescue and rescue operations. ;compensation.

Vale had about R $ 24,000 million in cash and the equivalent at the end of the third quarter. At the same time, Brazilian regulator CVM has announced the opening of an investigation on Vale, reported Valor Econômico.

In a note to customers, Credit Suisse badysts said they expected future regulatory changes to the tailings dams after the second such disaster in three years.