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Lawsuit

1 Jan 2015

Onça Puma, Vale lawsuit (re impact on Indigenous Peoples, Brazil)

Status: ONGOING

Date lawsuit was filed
1 Jan 2015
Date accuracy
Year Correct
Not applicable
Public entity
Location of Filing: Brazil
Location of Incident: Brazil
Type of Litigation: Domestic

Companies

Vale Brazil Energy, Oil, gas & coal, Metals & steel, Mining

Sources

Snapshot: In 2015, the Federal Public Ministry of Brazil asked the Federal Regional Court to assess the damage caused by the activity of Onça Puma, a subsidiary of Vale, on the Xikrin and Kayapó Indians and the environment, including the alleged contamination of the Cateté River. The court ruled that as long the company does not comply with the environmental licence obligations relating to Indigenous Peoples, the copper mine is suspended and the company has to pay compensation to the Indigenous Peoples. The amount of compensation was arbitrated separately. Onça Puma appealed this decision. In 2017, the 5th Panel of the Federal Regional Court 1 (TRF1) upheld the decision and confirmed compensation estimated at R$50 million was due until the implementation of compensatory measures for the Indigenous communities.

In November 2018, the TRF1 ordered the suspension of mining activities at the Onça Puma mine until the company complies with social and environmental obligations. It also ruled that Vale should pay R$100 million in compensation to the Xikrin and Kayapó communities for environmental and health damage. Vale said it will appeal this decision. It stated that "expert reports showed that the project does not cause any damage to the Cateté River and Indigenous communities, and that the project is duly licensed by the local environmental authorities."

In February 2019, the TRF1 ordered the mine activities to be suspended. Vale said it would appeal. In March 2019, the Federal Supreme Court suspended the mining activities. Vale said it would appeal and that it had proposed a settlement during a conciliation hearing at the Supreme Court, that was rejected by the Indigenous Communities and the Federal Prosecutor's office. In June that year, Vale said it suspended nickel processing at the mine. The Supreme Court's injunction was then suspended a few months later and allowed mining and processing activities of the Onça Puma to resume.

In October 2021, after various legal proceedings, the suspension of Vale's operating licence by the Environmental and Sustainability office of the state of Pará was confirmed in court. It was alleged that the company did not comply with the mitigation measures aimed at local communities. Vale said it would look into steps to overturn the decision.

In May 2024, it was reported that Vale and the state of Pará may reach an agreement that would see operations resume at the mine.

Vale's comments on the case are available here (see Indigenous Peoples - Onça Puma Nickel Mine, Brazil).