Brazil’s Oil Giant Vale Loses R$71B in Market Value After Dam Break

Company was downgraded by risk agency Fitch since now there is the expectation that reparation costs and monetary fines will be substantial.

By Lise Alves, Senior Contributing Reporter

RIO DE JANEIRO, BRAZIL – Mining giant of Brazil, Vale, registered on Monday the largest plunge in share value in a single day in its history, plummeting 24.52 percent during trading hours and losing R$71 billion (approximately US$19 billion) in market value.

The company was also downgraded by risk agencies after one of its dams broke on Friday afternoon.

“These downgrades reflect Fitch’s expectation that the company will incur heavy reparation costs as a result of this accident that resulted in sixteen confirmed fatalities and more than 300 missing people, caused . . .

To read the full NEWS and much more, Subscribe to our Premium Membership Plan. Already Subscribed?