Vale says to book extra $500M provision for Fundao dam obligations

Vale (VALE) has confirmed that the English High Court has found BHP Group Ltd (BHP) and BHP Group UK Ltd. liable under Brazilian Law for the failure of the Fundao dam, operated by Samarco Mineracao S.A, in 2015. The decision also confirmed the validity of waivers and releases signed by claimants already compensated in Brazil, which will reduce the number of claimants and the value of the claims. In July 2024, Vale and BHP entered into a confidential agreement under which liability is shared equally for any amount that BHP or Vale is found liable to pay. Vale and BHP remain confident that the Definitive Agreement signed in October 2024 in Brazil provides the quickest and most effective mechanisms to compensate those impacted. Vale estimates an additional provision of approximately $500M in its financial statements as of December 31, 2025, for obligations arising from the Fundao dam failure. As of September 30, 2025, Vale had already recognized a provision of $2.401B for obligations under the Definitive Agreement in Brazil.