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The rupture of the Vale mining dam in Brumadinho occurred last Friday (25), date on which the Brazilian stock exchange was closed due to holidays in São Paulo. On Friday, the company's ADRs dropped by 13% throughout the day and closed at around 8%.
Monday (28), the price adjustment of the shares traded on the Brazilian B3 will be carried out. As Vale holds nearly 11% of Ibovespa 's share, the impact on the stock will have a significant impact on the index.
Although doubts remain as to the causes of the accident and the culprits, Monday and Sunday. Even more dramatic, the death toll is already greater than that of the Mariana tragedy when a dam of Samarco (a company controlled by Vale and BHP) broke down, killing 19 people. In the case of Brumadinho, by the end of the afternoon, 37 deaths had been reported (and 287 missing).
Vale has already blocked a total of R $ 11 billion to help the victims, to contain the accident and to repair the environment. But it is still early to know if the value is sufficient. The state of Minas Gerais had also requested the blocking of shares held by Vale for up to R $ 20 billion.
See also:
– Minas Gerais calls for the blocking of R $ 20 billion in equities According to Banco Itaú BBA badysts, dam failure could complicate the obtaining of new shares licenses by Vale and delay (even more) the resumption of the operations of the company Itaú BBA.
– The tragedy of Brumadinho will have an impact on the Ibovespa
Samarco. According to the badessment of Bradesco BBI badysts, "the final operational impact is still uncertain because the government and regulators may require the inspection of other Vale dams".
This could even affect the iron ore market, the main product of the company.
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