The new sludge disaster in Brazil has damaged the confidence of foreign investors. Now, the government’s stricter environment, is to adopt conditions – against their will. From Rio de Janeiro Thomas the spleen.
“Murderess Vale”: the Brazilian construction company has lost its market value and Image greatly
A tailings basin mining company, Vale is torn. Through the destroyed dam million cubic meters of mud on settlements near the small town of Brumadinho have shot on Friday in the southeastern state of Minas Gerais, ergo. By Tuesday evening, 84 bodies have been recovered, and 276 people are missing. The world is watching in shock to Brazil.
Three years ago, a dam of the Vale was broken in 200 kilometres away, Mariana-daughter of Samarco, 19 people died. Also, the damage to the environment were enormous. Nevertheless, Samarco has not paid the penalties imposed in the billions. The Vale, in addition to the semi-state oil producer Petrobras, Brazil’s economic flagship, should not now come so easily. After five years of economic crisis, Brazil has to send out, finally, a positive signals, even in matters of environmental protection.
On Tuesday, the Vale, and announced the rapid closure of all 19 of outdated dams. The costs over three years for each ten percent of its iron ore transportation, each year about 40 million tons, and, therefore, billions of US dollars in revenue. In addition, the judiciary has already frozen 11.8 billion Reais to Vales accounts, environmental authorities have imposed penalties of 500 million Reais. “The Vale is the largest iron ore conveyor in the world and has solid foundations to this crisis away,” the Analyst Raphael Figueredo of Eleven Financial to the Deutsche Welle, nevertheless optimistic.
Otherwise the investors. On Monday, the Vale has lost a quarter of their market value, approximately 72 billion Reais. In spite of the expected billions in fines, it was an excessive reaction of the markets, says Glauco Legat, chief analyst of the broker Necton, opposite the Deutsche Welle. “This is a Disaster for the company.”
The search for the Missing continues – dozens of bodies have already been recovered
The consequences are likely to meet the Brazilian mining industry, believes Legat. He expects the new market rules, enhanced controls, and a General prohibition of obsolete dams. “The production and maintenance drive costs. We expect a harder future for mining companies, especially as it is heavier is likely to be, to get environmental licenses for new mines.”
Also for more rigid controls, the company will have to pay, Legat. “The government has no money, to the control authorities to equip Ibama and the DPMA. The need to Finance the mining companies in the Form of a levy.”
The disaster could open the government’s eyes
In the election campaign, President Jair Messias Bolsonaro had referred to the environmental authorities, Ibama, nor as a brake on the economy. He was going to do with your “ticket-industrial” conclusion. “The election campaign is one thing, but now he must govern,” said Nilo D’avila, Greenpeace Brazil, compared to the DW. “If we had in Brazil, in fact, this ticket industry, then the disaster of Brumadinho would not have happened.”
“I think this disaster has opened the government’s eyes,” says Legat. “You held the Monitoring of environmental regulations unimportant. Maybe she sees now is the reality.” On Tuesday, the government announced the immediate control of the thousands of dams in Brazil. However, it is Legat to bear in mind, could it be the suddenly discovered environmental awareness is also pure rhetoric in the face of public Outcry.
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First arrests after dam break
More controls are now important to strengthen the confidence of investors in the Brazilian market, believes Figueredo. “Brazil has a serious Problem: We delete just the fires, instead of preventing. But now the government wants to take action against the General impunity. This also includes a more rigid control in the environment.”
Foreign countries responded with pressure instead of investments
The misfortune to brake only once the hope of the government on much-needed investment from abroad. Currently, it is lacking the investors, the trust, says Figueredo. “In a short time, the two most important companies in Brazil have been made: first, Petrobras, with its huge corruption cases, now is the Vale. This accident leads to a bad mood for the investors.”
Especially since the Vice-President of the Hamilton Mourão brought on Monday the dismissal of the management of the Vale into the conversation. However, such an Intervention would be contrary to the liberal principles of government – above all the Minister of the economy Paulo Guedes. “If this is really happening, it would be a negative Surprise,” said Legat. “I hope you will let it.”
Muddy hand prints: Protest in front of the Headquarters of the mining group Vale in Rio
Already on Tuesday, rowed head of Cabinet Onyx Lorenzoni. Interference by the government was a “bad Signal” to the economy.
Media speculated, however, that behind the back out of the pressure of the mining-Lobby. As the former Deputy Leonardo Quintão advises the government in Mining. In the last legislative period Quintão, considered to be the top mining Lobbyist in Brasilia had prevented, a Change in the law to strengthen control of the tailings basin.
The influence of the mining Lobby in breach of Bolsonaros own promise, reminiscent of D’avila, Greenpeace. “A promise of this government was that it would not bend to political influences. Bolsonaro spoke out against the clique and for technical solutions. He needs to deliver now.”
D’Avila believes that from abroad instead of investing only once the pressure on the government is going to come. “Because the Vale is a large part of their capital on the New York stock exchange.” On Tuesday evening it became known that shareholders can sue the collection against the Vale and its management prepare. “That’s what happens,” D’Avila, “if you send the market to the devil. There is the good ideas.”
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Brazil: rage and sadness after dam breakHopeless Search
Firefighters bergen on Monday, the body of a buried Person. In the meantime, the chances of Living goes to zero. The last Survivors were found on Saturday. A day earlier, a dam at the Mine of the Brazilian mining company, was broken Vale, a mud avalanche rolled over parts of the plant and the nearby small town of Brumadinho.
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Brazil: rage and sadness after dam breakExhaustion and disillusionment
Exhausted and mud-stained rescue workers take a break. While the mud dries slowly, fighting to previously inaccessible areas and dig out more to the Victims. Support the local units of the approximately 130 Israeli soldiers, traveled to the disaster.
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Brazil: rage and sadness after dam breakAlso Indigenous evacuated
A member of the Pataxó breaks out in tears. A settlement of the indigenous people had to be evacuated after dam burst in the Metropolitan area of Belo Horizonte. According to the authorities, it is because of the sludge too dangerous to continue to live on the Paraopeba river.
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Brazil: rage and sadness after dam breakMudslide hits the water
A woman from the tribe of the Pataxó holds up on the banks of the Paraopeba a dead fish – about 13 million square feet of mud should have been in the river poured. It is still unclear how many of the pollutants contained in the sludge. For the Pataxó, the river is the basis of existence.
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Brazil: rage and sadness after dam breakSerious allegations against mine operator Vale
A mud-stained, activist, protested, like many others on Monday in front of the headquarters of the mining group Vale in Rio de Janeiro. Many Brazilians give the Vale to blame the mudslides disaster. However it is still unclear how it came to be. The German testing organisation, TÜV Süd had checked the dam in 2018. The Brazilian public Prosecutor’s office launched an investigation.
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Brazil: rage and sadness after dam breakMorbid art, performance as Protest
At the Demonstration in Rio de Janeiro, reddish brown stained, people laid in front of the Vale headquarters, and left their hand prints on a glass wall. A black-cloaked woman appeared as a death, more not clad demonstrators unveiled placards and described the walls with Slogans such as “It was no accident, it was a crime” and “justice for Brumadinho”.
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Brazil: rage and sadness after dam breakHistory repeats itself
The bewilderment in the face of an embankment breach in Brumadinho is greater than that in the city of Mariana in 2015, a similar misfortune happened. At the time came out 19 people died of toxic sludge contaminated the river Rio Doce to hundreds of kilometers and reached the Atlantic ocean. The former operator of the iron ore mine, Samarco, which also belonged, among others, Vale.