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Vale’s CEO, Fabio Schvartsman, has been temporarily removed from his executive position after the Brumadinho tragedy. File photo: Marcello Camargo/Agencia Brasil
Vale’s president, Fabio Schvartsman, and three directors of the Brazilian mining giant were temporarily removed from the company’s administration on Saturday, according to Vale’s Board of Directors. The removal were announced after the Federal Public Ministry recommended the actions.
Vale also informs that its Board of Directors remains in readiness to seek a transparent and productive relationship with the Brazilian authorities in order to clarify the facts, to properly remediate the damages and to maintain the company’s integrity, and that will keep society and markets informed about any new facts,” added the note announcing the removal of the executives.
In addition to Schvartsman, Gerd Peter Poppinga (Executive Director of Ferrous and Coal), Lucio Flavio Gallon Cavalli (Director of Planning and Development of Ferrous and Coal) and Silmar Magalhães Silva (Director of Operations of the Southeast Corridor) were removed.
Eduardo Bartolomeo, currently Vale’s Executive Director of Base Metals has been appointed as the company’s interim Chief Executive Officer by the company Board of Directors.
Despite announcing it as a ‘temporary removal’ local media is reporting that Schvartsman has already written his resignation letter.
Pressure from the public ministry, investors and Brazilian society to remove Vale’s CEO started days after the Brumadinho dam tragedy, where tons of mud and water broke through the Feijão Dam in the city of Brumadinho.
At least 182 people were confirmed dead and more than one hundred are still missing, buried under the mud.
Vale’s shares listed in the United States (known as ADRs) were down about four percent before the start of business on Monday, signaling its lowest level in nearly three weeks. Markets are not opened in Brazil due to Carnival.
By Lise AlvesSource: The Rio Times