Vale (VALE) closed -2.9% on Monday after saying it is investigating an overflow of water with sediment that occurred in a pit at its Fábrica mine in Brazil’s Minas Gerais state during the weekend.
Miner and steelmaker Companhia Siderurgica Nacional (SID) said tailing water flooded its facilities near the mine, including a loading area; CSN said its mining containment structures are operating normally, but it is not yet known if the incident will affect production.
Vale (VALE) said its own output would not be impacted by the incident.
The municipal government of Congonhas said Vale’s (VALE) slurry reached streams in the town, and a second overflow occurred at the company’s nearby Viga mine.
The incident does not involve a dam, and all dams in the region remain stable and under continuous monitoring, Vale (VALE) said; the Brumadinho dam collapse in Minas Gerais seven years ago killed 270 people.