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Vale’s compensation to 10,000 people for the disaster in Brumadinho exceeds R$2 billion

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Photo: Washington Alves/Reuters

a Valley So far, it has concluded compensation agreements with more than 10,300 people affected by the failure of one of its dams in Brumadinho (MG), in January 2019, and evictions as a result of the disaster, paying more than R$2 billion, the miner said on Monday.

Of the total, 1,400 labor agreements were signed, involving more than 2,400 people, and 3,600 civil agreements, covering 7,900 people.

Vale did not provide a forecast for how many people will remain eligible for compensation or the total amount that might eventually be paid. People who feel affected in any way can contact the company at any time.

In parallel, the company signed in February an agreement worth 37.69 billion riyals with several parties with a focus on repairing the collective damage caused by the collapse of the dam, which left about 270 people dead, in addition to the damage to homes, rivers and forests in the region. ..

Vale previously reported that the balance of provisions for the Global Collective Compensation Agreement, as well as individual, labor, contingency, removal and containment compensation, amounted to $4.014 billion at the end of the first quarter of this year.

After the disaster, the company had to conduct a series of safety reviews of its activities, which led to the removal of many residents from the vicinity of other dams in Minas Gerais and the decommissioning and improvement of many structures.

The company said in a press statement: “The figures confirm the company’s commitment to fair and prompt compensation to all those who have suffered any impact due to the dam’s failure or evictions.”

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The company highlighted that people who have been compensated have access to psychosocial assistance, financial education, guidance to purchase real estate and support for the resumption of production through the Comprehensive Assistance Program for Affected People (PAIA), which Vale has been offering since 2019. To date, nearly 3,000 people through the program, which is voluntary and free, according to the company.

Valley also explained that due to the pandemic, communication with applicants has been adapted to enable remote negotiations, always with the participation of a public defender or a lawyer chosen by the people themselves, and that the new format has allowed for more flexibility in contacting lawyers and in the course of proceedings.

Valley also reported that it is working in parallel with the civil and labor compensation process with the Social and Economic Recovery and Income Generation Program in the areas in which it operates.

In March, it launched a project called Horizonte, in partnership with entrepreneurship education company Semente Negócios, which completed its first phase with 1,200 trained people and 78 projects selected for a course of technical assistance, workshops and mentoring.

The acceleration phase will run from October 2021 to October 2022 and will include 39 of the most outstanding projects.