Vale's CEO quits after Brazil dam disaster

Brazil's Vale CEO and several senior executives have quit after one of its mining dams burst in January, killing more than 300 people.

The president of the mining company Vale, Fabio Schvartsman

CEO of the mining company Vale, Fabio Schvartsman will be dismissed. (AAP)

Brazilian iron ore miner Vale SA Chief Executive Fabio Schvartsman and several other senior executives have resigned in what the company described as a temporary move, after one of its mining dams burst in January, killing hundreds.

Vale said Schvartsman offered his resignation, which the board "immediately accepted" after state and federal prosecutors recommended their removal late on Friday.

The move comes slightly over a month after a tailings dam broke at Vale's Corrego do Feijao mine in the interior Brazilian state of Minas Gerais, likely killing more than 300 people and releasing massive amounts of toxic sludge.

It was the second deadly burst at a Vale-linked tailings dam in Minas Gerais in four years.

The resignations came after documents emerged in recent weeks showing that Vale knew it had an elevated risk of rupture and that inspectors felt they were under pressure to certify the structure as safe.

Earlier this week, newspaper Folha de S.Paulo reported that a Vale manager had told executives the integrity of the structure had worsened, though the company vigorously denied the report.

The company said it had appointed Eduardo Bartolomeo, executive director of base metals, as the new head of the firm.

Also resigning were Vale's head of ferrous minerals and coal, Peter Poppinga, planning director Lucio Flavio Gallon Cavalli and Silmar Magalhaes Silva, the head of a geographic division at Vale.

Vale said its board met on Friday night and Saturday morning following the prosecutors' recommendation.

In a letter sent to the board by Schvartsman and published by newspaper Folha de S.Paulo, in which he asked to be removed from the position of CEO on a "temporary" basis, the executive vigorously defended his conduct.

"I am absolutely convinced that the way I have acted personally, as well as the rest of our executive board ... has been absolutely appropriate, correct, and, mainly, loyal to our non-negotiable values of upholding operational security as a company," the letter read, according to Folha.

Vale did not immediately respond to a request for comment.


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Source: AAP



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