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Vale CEO and top managers resign after Brazil dam collapse

Staff Writer |
Chief executive officer of Vale Fabio Schvartsman and other executives resigned as the iron-ore producer came under pressure for the dam collapse in Brazil's southeast Minas Gerais state that killed 166 people.

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His resignation followed an investigation into the disaster. Other 13 staff members of the company, which owns the dam, were also asked to leave.

On March 1st 2019, the board of directors received from the Federal Public Prosecution Office (Ministério Público Federal), the Public Prosecution Office of the State of Minas Gerais (Ministério Público do Estado de Minas Gerais), the Federal Police and the Civil Police of Minas Gerais the Recommendation No. 11/2019 with considerations and recommendations on the dismissal of some executives and employees at various levels of the company.

"Vale’s Board of Directors held meetings during Friday night, March 1st, 2019 and Saturday morning, March 2nd, 2019, including interactions with the company’s executives," Vale said.

"During these discussions, the Board received from the executives Fábio Schvartsman (CEO), Gerd Peter Poppinga (Executive Director of Ferrous and Coal), Lucio Flavio Gallon Cavalli (Head of Planning and Development of Ferrous and Coal) and Silmar Magalhães Silva (Head of Operations of the Southeast Corridor), requests for temporary removal from office, which were immediately accepted."

Brazilian authorities on Jan. 29 arrested three Vale employees and two subcontracted engineers for licensing the tailings dam or signing documents on its safety. Eight more employees were arrested on Feb. 15.

The dam collapse has left at least 166 dead and 155 missing, besides causing an environmental disaster.

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