Vale's shares increase by more than 8% after the mining risk reduction plan

Relatives of victims of disturbance of Vale dam in Brumadinho go to the city entrance – AFP

Vale's action rose on Wednesday (30) at the São Paulo Stock Exchange, the day after the plan presented by the miner to reduce the risk of his dams after the tragedy of Brumadinho

At 2 pm, the group's bonds were 8.4%, strengthening the Ibovespa index, which rose 0.28%.

"The market had a positive perception of the main points" of the plan presented Tuesday, which provides for the cessation of the activities of a dozen dams of the type of those who broke in Brumadinho, according to AFP Glauco Legat, 19659006] The dismantling of these dams will reduce the group's annual iron ore production by 10% of its total production in three years, or 40 million tonnes, and will require an investment of R $ 5 billion.

These costs "are not so shocking, the value of dismantling is relatively high in absolute terms, but in terms of cash … they will be diluted in three years," says Legat.

According to the badyst, investors also reacted favorably to the announcement that the Brazilian government had rejected the idea of ​​intervening in the company, privatized in 1997.