BHP Billiton Limited (ADR) (NYSE:BHP), Vale SA (ADR) (NYSE:VALE) Brazil Damn Burst
BHP Chief Executive Andrew Mackenzie held a news conference in the hours following the disaster and the company announced he would travel to Brazil to survey the damage. It has also splashed almost daily updates on the tragedy in English and Portuguese across the top of its website.
By contrast, Vale released a five-sentence statement some 24 hours after the dams collapsed and referred questions to Samarco. Vale’s chief executive, Murilo Ferreira, made an unannounced visit to Mariana on Saturday, which the company revealed two days later.
Mariana’s mayor has worked closely with Samarco, but he said on Monday that no senior executives from Vale or BHP Billiton had contacted him.
Influential columnist Miriam Leitao excoriated the company on Tuesday for its “absolutely insufficient” response.
“Vale has been drilling and dumping around Minas Gerais for 70 years,” Leitao wrote in newspaper O Globo. “After a disaster of this scale, it can’t issue a laconic statement as if it weren’t obliged to act immediately.”
She called on Ferreira to explain how Vale will compensate displaced families, contain the environmental damage and monitor the ongoing effects of the spill downstream.
Asked for a response, Vale representatives reiterated that Ferreira had met with Samarco executives and offered helicopters and other equipment for the rescue efforts.
Leitão also pilloried the federal government for leaving state authorities to sort out the environmental impact of the collapsed dams and 60 million cubic meters of waste water contaminating rivers and coastline over 500 km (300 miles) away.
Biologists warn that the environmental impact may be permanent, devastating local fisheries and farms.
Tourism and other industries are already suffering. Wood pulp maker Cenibra suspended operations at two production lines due to the mudflow threatening its water source.
President Dilma Rousseff has not traveled to the disaster area, although she said in at a speech on Tuesday that she is “very worried” about the mud and waste from the burst dams making its way downstream. She said her government was ready to help state and local authorities.
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