| BHP Billiton, Vale Shares Are Crashing Following Lawsuit Over Deadly Dam Disaster | |
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The on Monday wrote that the Brazilian government issued a statement saying it would sue BHP Billiton Limited ADR (NYSE: BHP) and Vale SA (NYSE: VALE) due to a deadly dam failure that killed 13 people. The dam failure displaced hundreds of Brazilians and contaminated the Rio Doce River with a toxic waste.
This incident has caused shares of BHP Billiton and Vale to fall to 10-year lows as both companies equally own Samarco Mineraco SA, which is the entity responsible for the incident.
Shares of BHP Billiton last closed at $26.98 and down more than 4 percent in Monday's pre-market session. Vale last closed at $3.57 and was down about 7 percent in pre-market trading.
According to , "The dam incident has put new financial pressure on BHP at a time when it was already challenged by falling prices for the commodities it sells, especially iron ore... The problem has prompted BHP Billiton’s shareholders to query whether the company can sustain its dividend payout, among the highest in the industry."
See Also: Vale, BHP Billiton Shares In Free-Fall After Dam Disaster
Falling iron ore prices have been hurting BHP's profitability and BHP chairman Jacques Nasser had to issue a statement saying BHP will not change its dividend policy until early next year at the earliest.
The lawsuit is demanding damages of $20 billion Brazilian reals (about $5.2 billion dollars) and will be used to fund cleanup and rehabilitation efforts for damaged villages surrounding the dam.
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Vale
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EXPLORATION STAGE |
CODE : VALE3.SA |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Vale is a producing company based in Brazil. Its main exploration property is GALIURO in USA. Vale is listed in Brazil and in France. Its market capitalisation is BRL 325.8 billions as of today (US$ 150.8 billions, € 137.9 billions). Its stock quote reached its lowest recent point on February 19, 2016 at BRL 10.51, and its highest recent level on August 27, 2021 at BRL 99.80. Vale has 5 244 319 744 shares outstanding. |