Vale (VALE) clears final level 3 dam as it advances decharacterization
Rhea-AI Filing Summary
Vale S.A. reports a key safety milestone at its tailings dams. The emergency level of the Forquilha III dam at the Fábrica mine in Ouro Preto has been reduced from level 3 to level 2 by decision of the Brazilian National Mining Agency, meaning Vale no longer has any dams classified at emergency level 3 in its portfolio.
Management highlights that this reduction follows new field and laboratory data, studies and improved instrumentation, and that all of Vale’s tailings dams now comply with the Global Industry Standard on Tailings Management. The Forquilha III dam is included in Vale’s Upstream Dam Decharacterization Program, with decharacterization works scheduled to begin in 2026; since 2019, 17 of the 30 structures in this program have already been decharacterized. Vale emphasizes ongoing 24/7 monitoring through its Geotechnical Monitoring Center and continued investment in governance and technology to improve dam safety.
Positive
- None.
Negative
- None.
Insights
Vale removes all level 3 dam emergencies, reducing tailings risk profile.
Vale indicates that the Forquilha III dam’s emergency status has been cut from level 3 to level 2 by the Brazilian National Mining Agency, leaving no dams at emergency level 3 in its portfolio. The change is based on new field and lab data, studies, and upgraded instrumentation that support higher safety factors under regulatory criteria.
The company also states that it has implemented the Global Industry Standard on Tailings Management across all tailings dams and continues an Upstream Dam Decharacterization Program. As of
From a risk perspective, tailings management is central to license-to-operate and potential liabilities in mining. While no financial metrics are given, the removal of level 3 emergencies and 24/7 monitoring via the Geotechnical Monitoring Center may ease operational and regulatory risk perceptions. Future disclosures in annual and sustainability reports can show how this progress translates into long-term cost, liability, and capacity impacts.
FAQ
What safety milestone did Vale (VALE) announce regarding the Forquilha III dam?
Vale announced that the emergency level of the Forquilha III dam, at the Fábrica mine in Ouro Preto (MG), was reduced from level 3 to level 2 by the Brazilian National Mining Agency. As a result, Vale states it no longer has any dams classified at emergency level 3 in its portfolio.
How does this change affect Vale (VALE) dam emergency classifications overall?
With the Forquilha III dam moving from emergency level 3 to level 2, Vale reports that it has fulfilled its commitment for 2025 to have no dams at emergency level 3. All remaining dams are now at lower emergency classifications according to the company.
What progress has Vale (VALE) made on its Upstream Dam Decharacterization Program?
Vale states that since 2019, 17 of the 30 structures in its Upstream Dam Decharacterization Program have been decharacterized. The Forquilha III dam is part of this program and is undergoing preparatory works, with decharacterization scheduled to begin in 2026.
Has Vale (VALE) implemented the Global Industry Standard on Tailings Management (GISTM)?
Yes. Vale reports that it has implemented the Global Industry Standard on Tailings Management (GISTM) for all of its tailings dams, stating that this implementation was completed within the scheduled timeframe.
How does Vale (VALE) monitor its dams on an ongoing basis?
Vale notes that its dams are subject to permanent control and monitoring, operating 24 hours a day, 7 days a week, through the company’s Geotechnical Monitoring Center, which tracks conditions and instrumentation data.
Who commented on the dam safety achievement for Vale (VALE)?
Gustavo Pimenta, Vale’s CEO, highlighted the fulfillment of the 2025 commitment to have no dams at emergency level 3 and the implementation of GISTM. Rafael Bittar, Vale’s Technical Executive Vice-President, emphasized the decharacterization progress and investments in governance and technology.
