Two years after Brazil mining disaster, no closure for victims or Vale

BRUMADINHO: Families of the roughly 270 victims of a Vale SA mining dam collapse in Brazil held protests and vigils on the disaster's second anniversary on Monday, raising pressure on the company as it struggles to settle legal claims.

Firefighters are still searching for the bodies of 11 victims presumed lost in a torrent of mining sludge that buried a full cafeteria at lunchtime in the town of Brumadinho, Minas Gerais state, on Jan. 25, 2019.

Excavators are digging through the muck at the site, with trucks hauling away loads of waste that firefighters say is up to 15 meters deep.

"Vale destroyed not only my family but countless families, and the lives of many people," Atamaio Ferreira, whose sister's body has been recovered, told Reuters.

Vale said in a statement it remained committed to fully making up for outcome of the disaster.

The mining company and Minas Gerais state officials have failed to reach a settlement, which would cover compensation for victims and the environmental cleanup, after multiple rounds of negotiations.

The latest talks fells part on Thursday. A person close to the negotiations told Reuters that Vale offered a 29 billion reais ($5.30 billion) settlement, while state authorities demanded 40 billion reais.

After the meeting, Minas Gerais Secretary General Mateus Simões delivered an ultimatum, saying a lawsuit would proceed if there was no new offer from Vale by Jan. 29.

Vale said in a statement it had not "defined values" for a potential settlement.

State prosecutors said on Monday they would continue to seek compensation for the victims.

In a note last week, investment bank BTG Pactual said the lack of an agreement was a "lose-lose situation" for all involved, as it would delay new investment in the region while increasing the risk a decision will go to the courts.

RBC Capital Markets said last week it had raised its estimate of Vale's potential liability for the disaster by $5 billion to $7.2 billion, based on the government's demands.

The Brumadinho disaster - the second fatal dam collapse at a Vale-affiliated facility in four years - alerted the mining industry and investors to the dangers of thousands of tailings dams around the world, many of which are in disrepair.

The United Nations, the Church of England's pension board and the Council on Ethics of the Swedish National Pension Funds on Monday said they would form an independent organization to enforce global tailings standards that the trio helped write last year.

The group intends to use the threat of disinvestment to persuade miners around the globe to adhere to the standards, said Adam Matthews, the Church of England pension board's ethics director.

"We've told the mining industry that it doesn't matter where the next tailings disaster is, it'll be bad for all," Matthews said.

On Sunday night, honking cars adorned with black ribbons conducted a motorcade vigil for the dead.

"I lived very well with my husband, with a lot of love, a lot of dignity. And Vale came in and simply took it all from us," said Sueli de Oliveira, wife of one of the victims. "I want justice."