At the Paracatu and Patrimonio dams, the Fazendao and Gongo Soko mines, Vale has initiated Protocol Level 1 preventive measures that do not require the evacuation of downstream populations.
The Borrachudo II dam at the Caue mine in Itabir, dams 6 and 7A at the Aguas Claras mine in Nova Lima and Zone IX at the Fabrika mine in Ouro Preto are also at level 1 of the emergency protocol, four-stage. a scale of levels in which 0 means no risk and 3 means inevitable risk of failure. According to the company, these procedures will not affect iron ore production this year.
In April, Brazil's National Mining Agency (ANM) said it would halt operations on 47 mining dams that have not been confirmed as stable, including at least 25 Vale's.
The safety of Vale's facilities came under scrutiny after the Brumadinho Dam collapsed last year, creating a stream of mining waste that killed about 270 people. This was the second Valais dam to collapse in four years.
Dividend
Fitch Ratings upgraded Vale's credit rating, saying the iron ore producer had lowered its chances of default after dam safety improved following the collapse of Brumadinho.
According to the latest data, the upgrade to 'BBB' from 'BBB-minus' refers to the long-term issuer default ratings in both foreign and local currency.
Vale will pay more than $ 2 billion in dividends this year, according to the rating agency.
Following the 2019 crash, the mining company suspended its dividend payments.
In July, Vale's CFO Luciano Xiani told investors that the company was going to pay dividends, but did not say when.
The constraints caused by the Vale Dam accident, as well as production disruptions related to weather conditions in Brazil in the first half of this year, "kept iron ore prices at unacceptably high levels," Fitch Ratings reported.
Fitch Ratings estimates that widespread problems caused by the coronavirus pandemic will only have a marginal impact on Vale's results, while its free cash flow will remain strong.
