Vale suffer high costs from conflict in French Pacific

Friday, 30 May, 2014

Violent protests against Brazilian coal giant Vale have rocked the small French Pacific island of New Caledonia. According to Reuters “rioters torched vehicles, equipment and buildings at Vale's nickel mine.”

Local communities are allegedly angered at the lack of response to an acid spill from the mine that polluted a nearby river, killing thousands of fish. The incident occurred on the weekend and follows Vale’s trouble in Mozambique earlier this year, when their train carrying coal wassubjected to gunfire, purportedly by rebel forces. 

Anyone surprised by the high costs of community conflicts as reported in a ground breaking academic paper this month will realize how the number reaches into the billions: according to an executive director at Vale, “damage to the mining site was estimated at least $20 million to $30 million, including the destruction of perhaps one third of the truck fleet.”