Minas Gerais Court Halts $17.7 Million Fine Against Vale

The Court of Justice of Minas Gerais (TJMG) has suspended a fine of R$ 87.9 million (approximately $17.7 million USD) imposed on the mining company Vale. The penalty was originally issued in March 2026 by the State Comptroller General (CGE-MG) following an administrative process initiated in 2020. This process investigated alleged fraud in the stability declaration for the dam that ruptured in Brumadinho, Minas Gerais, in 2019. The CGE-MG had concluded that Vale provided false data and engaged in acts detrimental to public administration, as defined by the Anti-Corruption Law.

Vale appealed the decision, arguing that the case did not involve corruption, undue advantage, bid rigging, or capture of public officials. The company also pointed to an ongoing case at the Supreme Federal Court (STF) concerning a similar R$ 86.2 million fine from the Federal Comptroller General (CGU) based on the same law. TJMG Judge Alberto Diniz Junior cited the STF's preliminary assessment, which questioned the applicability of the Anti-Corruption Law in such cases, suggesting it was intended for corporate corruption, not general illicit acts. The judge noted that despite the STF case not being concluded, the existing votes indicated a significant doubt about the law's scope, leading to the suspension of the Minas Gerais fine.

The CGE-MG investigation detailed that Vale allegedly used an intermediary, Tüv Süd, to submit false technical reports and stability declarations about the dam's critical safety condition. This allegedly concealed the true risk from environmental agencies and the Public Prosecutor's Office, hindering oversight. The original fine, equivalent to 0.1% of Vale's estimated 2019 gross revenue, also required the company to publicize its condemnation.