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Lula Criticizes Vale’s Handling of Mariana Disaster Reparations

Lula Criticizes Vale’s Handling of Mariana Disaster Reparations

Introduction

On September 26, 2025, Brazilian President Luiz Inácio Lula da Silva made strong remarks regarding the Vale mining company’s response to the catastrophic dam failure in Mariana, Minas Gerais, which occurred in November 2015. During a ceremony marking the inauguration of the Federal Council for Social Participation of the Rio Doce Basin and Capixaba North Coast, Lula expressed his belief that Vale’s approach was misled and potentially deceptive towards the victims.

Vale’s Creation of the Renova Foundation

Lula accused Vale of establishing the Renova Foundation — created in 2016 following the disaster — with the intention of misleading the affected populace. He claimed that Vale, under its previous leadership, was resistant in negotiations to adequately compensate and rehabilitate the impacted communities. “The company had a president who did not want to negotiate and aimed to create a foundation possibly to deceive the local people,” Lula stated.

New Measures for Justice and Reconstruction

In June 2025, the federal government took new steps by signing a comprehensive agreement to overhaul the previous model set by the Renova Foundation. Known as the New Agreement for Rio Doce, this pact aims to ensure direct transfers of funds for infrastructure improvements in health, education, social assistance, income generation, and environmental initiatives.

Lula emphasized that the previous arrangements failed to deliver meaningful results for the communities. “What was promised yielded no results. The leadership of the Renova Foundation was uncooperative, refusing to enter talks and disregarding the workers’ needs,” he asserted.

Empowerment of the Affected Communities

The president highlighted the importance of involving the affected communities in the governance of funds meant for reconstruction. He stressed that the successful implementation of the New Agreement for Rio Doce is contingent upon community oversight and active participation. “This agreement is exceptional, not just for the deservedness of the people, but because it was achieved through significant struggles and negotiations,” Lula remarked.

Details on the New Agreement

During the inauguration ceremony, Lula revealed that the New Agreement for Rio Doce is projected to involve an estimated R$ 170 billion in funding. This includes R$ 1.6 billion already disbursed for 104 new services through the Unified Health System (SUS) across 48 municipalities involved in the agreement. A total of 36 council members were officially inaugurated, with decision-making power over a R$ 5 billion community fund aimed at various local projects.

Conclusion

Asserting a shift in accountability, Lula proclaimed, “It is no longer Vale that holds responsibility; it is now us and you, the residents of the region.” The ongoing efforts signal a critical transformation in approaching reparations for the Mariana disaster, with a clear focus on empowering local communities and ensuring their needs are prioritized in the recovery process.