Credit Suisse analysts also mirrored the sentiment, pointing out that this is Vale’s second disaster associated with its dams over the last three years, which could lead to a more stringent regulatory response.
Andrew Cosgrove, Metals and Mining Analyst, Bloomberg Intelligence, argued that Vale could have to bear $7 billion in damages after accounting for the updated dividend suspension, and overall damages could exceed that of 2015 if the death toll tops 300.
Three court orders already froze $3 billion in vale assets to pay for the damages while Brazil’s environmental agency, Ibama, fined the company $66.3 million for pollution and other regulatory violations, TheStreet reports.
While Vale said the waste behind the dam is made up of mostly sand and non-toxic material, a previous United Nations report asserts the waste contains high levels of toxic heavy metals.
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