Good morning! Today, Vale seeks ESG clout by giving up indigenous land rights. Bolsonaro struggling to regain support. IMF says Brazil is recovering faster than expected.
Vale gives up on all indigenous land claims
Discreetly, Brazilian mining giant Vale has decided to give up on all claims for mining rights on indigenous lands. The move aims to send a message to international investors about the company’s commitment to ESG (environment, social, and governance) principles.
- Since 2020, Vale had given up on 89 claims — and now drops the remaining 14.
Yes, but … In recent years, Vale had a hand in two of the worst environmental tragedies in Brazilian history.
- It was a part-owner of Samarco, a company whose lax safety policies failed to prevent the collapse of a tailings dam in 2015. The spill wiped entire villages from the map and damaged an important river in Minas Gerais.
- Then, in 2019, another dam collapse killed 272 people and left thousands homeless.
- In both cases, victims still struggle to get compensation and accuse Vale of using the legal system to skirt responsibility.
Why it matters. Financial reports show that Vale’s business fundamentals are as strong as ever, with net profits reaching...