Vale disaster may prompt tighter Brazil mining laws

Significance

The Brumadinho collapse comes just over three years after the similar Samarco disaster in Mariana. Health, environmental and economic concerns are mounting as sludge flows down Paraopeba river and may soon reach the Sao Francisco river. New evacuations have been ordered today at another Vale tailings dam, at the Gongo Soco mine.

Impacts

• Vale faces economic and reputational damage but government intervention in the company is unlikely.
• Brazil’s key mining exports may be affected by Vale’s output suspension in some areas.
• The episode may oblige the government to reconsider its preference for making environmental laws more flexible.