August 19, 2019 / 9:33 PM / 2 months ago

Brazil securities regulator ramps up Vale dam disaster probe

FILE PHOTO: A helmet with a logo of Vale SA is seen in a collapsed tailings dam owned by the company, in Brumadinho, Brazil February 13, 2019. REUTERS/Washington Alves

SAO PAULO (Reuters) - Brazil’s securities regulator CVM said on Monday it has opened up an additional investigation into whether executives of iron ore miner Vale SA breached their fiduciary duties in relation to a January dam collapse which killed nearly 250 people.

The investigation is related to an initial administrative probe opened on Jan. 28, when CVM started looking into potential violations of securities laws over the incident.

The securities body, which has the power to impose fines and bar executives from working at listed companies in Brazil, added the investigation does not concern environmental issues, which it said other agencies are looking into.

In an emailed statement to Reuters, Vale said it was aware of the investigation carried out by CVM. “We remain available and will maintain a transparent and collaborative stance,” the company said.

Vale shares have fallen over 14% so far in 2019, after climbing almost 32% in 2018.

Reporting by Gabriela Mello and Marta Nogueira; Editing by Lisa Shumaker and Cynthia Osterman

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