Prosecutors seek R$1 billion freeze from Vale after mine spill

Brazil's Federal Public Prosecutor's Office has sued mining giant Vale, seeking to freeze R$1 billion in assets and halt operations at the Fábrica Mine in Minas Gerais after a spill of 262,000 cubic meters of water and sediments that caused environmental damage. The incident took place on January 25, 2026, impacting streams feeding the Maranhão and Paraopeba rivers. The lawsuit points to violations of environmental licenses and delays in notifying authorities.

The spill happened at the Cava Área 18 of the Fábrica Mine, located between Ouro Preto and Congonhas in Minas Gerais, on Sunday, January 25, 2026. According to the Federal Public Prosecutor's Office (MPF), about 262,000 cubic meters of water and sediments escaped, burying the Ponciana and Água Santa streams and raising water turbidity to more than twice the legal limit. This led to environmental damage in the Maranhão and Paraopeba rivers, with ongoing flow of potential contaminants.

The lawsuit, signed by prosecutor Carlos Bruno Ferreira da Silva, accuses Vale of operating against its environmental license, which explicitly banned containment structures in the pit. Inspections showed the company used an internal access road as an improvised dam, which collapsed due to rains. Moreover, Vale took ten hours to notify authorities, breaching the two-hour legal deadline, hindering Civil Defense response.

The MPF seeks to freeze R$1 billion for damage repairs, suspend the mine's sale or transfer rights, and require immediate hiring of an independent technical advisory for stabilization, halting operations until safety is ensured. A day later, another spill occurred at Vale's Viga Mine.

Vale states it has not been notified and will respond. There are discrepancies: the miner claims the spill was contained, involving only water and soil without tailings reaching waterways. Minas Gerais government reports significant tailings volume, imposing a R$3.3 million fine. “The action aims to secure resources for full damage reparation and halt operations non-compliant with the environmental license,” the MPF stated.

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