A Brazilian court said that iron ore producer Vale SA lost 200 million reais ($38 million) after disadvantages in government decisions amid a corruption and money laundering scheme.
The court decision showed that Aiga Mineracao in 2023 acquired the rights to minerals in an area of the Capanema mine, but misappropriated a pile of Vale’s tailings that could have been recovered and generated profit. Officials at the mining sector’s regulator — known as ANM — including a director arrested amid a police probe, are accused of favoring Aiga over Vale, according to the court decision.
Vale didn’t immediately respond to a request for comment. Aiga couldn’t be reached for comment by Bloomberg News.
Brazil’s federal police have uncovered a criminal organization operating in the mining sector to defraud environmental licenses by paying bribes to public officials, according to a statement on Wednesday. The court decision cited some of the police findings.
Vale is one of the world’s largest iron ore suppliers.
Vale just recently resumed operations at Capanema mine, an expansion project that will add 15 million tons a year and is key to the company’s goal of producing 340 million to 360 million tons next year. The Rio de Janeiro-based miner is also investing to produce more iron ore by reusing tailings and waste rock. Vale estimates 10% of its output could come from circular mining by 2030, mostly from Minas Gerais. (By Mariana Durao)
