ARTICLE | 2 MIN

Avoiding Another Brumadinho Disaster - Regulation and Deeper Engagement

April 8, 2020

A global regulation and deeper engagement is what is needed to ensure a Brumadinho-style disaster doesn’t happen again, the Secretary-General of the Council on Ethics Swedish National Pension Funds says in a podcast.

Tailings dams – which can stand at a height of dozens of metres and stretch for several kilometres – are the most common waste disposal method for mining companies. Despite their ubiquity, there are no established global mining industry standards defining what a tailings dam is, how to build one and how to care for it after it is decommissioned.

So perhaps it is of no surprise that there have been a handful of dam bursts in recent years – Mount Polley in Canada in August 2014 and the Samarco disaster in Brazil in November 2015. However, it is probably the Brumadinho disaster in Brazil in January 2019 that has garnered most attention.

In the aftermath of the Brumadinho disaster, “we realised that the regulatory systems on this [tailing dams] issue wasn’t working properly and that this was something we were going to have to address,” John Howchin, the Secretary-General of the Council on Ethics Swedish National Pension Funds, said in a podcast hosted by Jason Mitchell, Co-head of Responsible Investment at Man Group. “So, together with the mining industry and UNEP, we are now taking forward one global standard on tailings dams and how to manage risk within tailings dams. Not one local standard or one national standard for one country. It’s a global standard.”

Howchin stressed that there was a need to do more going forward. “We need efficiency within the regulatory framework,” he said, “We, as long-term investors, need to be assured that there is a certain quality within those regulatory frameworks.”

Another way this issue has been addressed is via deeper engagement with mining companies and global regulation, according to Howchin. “Our experience post Brumadinho was that we have to engage much deeper [with the mining companies] on these structural issues,” he said. However, Howchin acknowledged that addressing these issues was not going to without its challenges. “The mining industry is made up of so many small little single mining companies all over the world so it’s going to take a while to get this going,” he said.

Comments may have been edited and condensed for editorial purposes.

Back to podcast

Subscribe to Man Institute

For further clarification on the terms which appear here, please visit our Glossary page.

Author(s)

Jason Mitchell Head of Responsible Investment Research, Man Group

This information is communicated and/or distributed by the relevant Man entity identified below (collectively the "Company") subject to the following conditions and restriction in their respective jurisdictions.

Opinions expressed are those of the author and may not be shared by all personnel of Man Group plc (‘Man’). These opinions are subject to change without notice, are for information purposes only and do not constitute an offer or invitation to make an investment in any financial instrument or in any product to which the Company and/or its affiliates provides investment advisory or any other financial services. Any organisations, financial instrument or products described in this material are mentioned for reference purposes only which should not be considered a recommendation for their purchase or sale. Neither the Company nor the authors shall be liable to any person for any action taken on the basis of the information provided. Some statements contained in this material concerning goals, strategies, outlook or other non-historical matters may be forward-looking statements and are based on current indicators and expectations. These forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update or revise any forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements. The Company and/or its affiliates may or may not have a position in any financial instrument mentioned and may or may not be actively trading in any such securities. Unless stated otherwise all information is provided by the Company. Past performance is not indicative of future results.

Unless stated otherwise this information is communicated by the relevant entity listed below.

Australia: To the extent this material is distributed in Australia it is communicated by Man Investments Australia Limited ABN 47 002 747 480 AFSL 240581, which is regulated by the Australian Securities & Investments Commission ('ASIC'). This information has been prepared without taking into account anyone’s objectives, financial situation or needs.

Austria/Germany/Liechtenstein: To the extent this material is distributed in Austria, Germany and/or Liechtenstein it is communicated by Man (Europe) AG, which is authorised and regulated by the Liechtenstein Financial Market Authority (FMA). Man (Europe) AG is registered in the Principality of Liechtenstein no. FL-0002.420.371-2. Man (Europe) AG is an associated participant in the investor compensation scheme, which is operated by the Deposit Guarantee and Investor Compensation Foundation PCC (FL-0002.039.614-1) and corresponds with EU law. Further information is available on the Foundation's website under www.eas-liechtenstein.li.

European Economic Area: Unless indicated otherwise this material is communicated in the European Economic Area by Man Asset Management (Ireland) Limited (‘MAMIL’) which is registered in Ireland under company number 250493 and has its registered office at 70 Sir John Rogerson's Quay, Grand Canal Dock, Dublin 2, Ireland. MAMIL is authorised and regulated by the Central Bank of Ireland under number C22513.

Hong Kong SAR: To the extent this material is distributed in Hong Kong SAR, this material is communicated by Man Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission in Hong Kong.

Japan: To the extent this material is distributed in Japan it is communicated by Man Group Japan Limited, Financial Instruments Business Operator, Director of Kanto Local Finance Bureau (Financial instruments firms) No. 624 for the purpose of providing information on investment strategies, investment services, etc. provided by Man Group, and is not a disclosure document based on laws and regulations. This material can only be communicated only to professional investors (i.e. specific investors or institutional investors as defined under Financial Instruments Exchange Law) who may have sufficient knowledge and experience of related risks.

Switzerland: To the extent this material is made available in Switzerland the communicating entity is:

  • For Clients (as such term is defined in the Swiss Financial Services Act): Man Investments (CH) AG, Huobstrasse 3, 8808 Pfäffikon SZ, Switzerland. Man Investment (CH) AG is regulated by the Swiss Financial Market Supervisory Authority (‘FINMA’); and
  • For Financial Service Providers (as defined in Art. 3 d. of FINSA, which are not Clients): Man Investments AG, Huobstrasse 3, 8808 Pfäffikon SZ, Switzerland, which is regulated by FINMA.

United Kingdom: Unless indicated otherwise this material is communicated in the United Kingdom by Man Solutions Limited ('MSL') which is a private limited company registered in England and Wales under number 3385362. MSL is authorised and regulated by the UK Financial Conduct Authority (the 'FCA') under number 185637 and has its registered office at Riverbank House, 2 Swan Lane, London, EC4R 3AD, United Kingdom.

United States: To the extent this material is distributed in the United States, it is communicated and distributed by Man Investments, Inc. (‘Man Investments’). Man Investments is registered as a broker-dealer with the SEC and is a member of the Financial Industry Regulatory Authority (‘FINRA’). Man Investments is also a member of the Securities Investor Protection Corporation (‘SIPC’). Man Investments is a wholly owned subsidiary of Man Group plc. The registration and memberships described above in no way imply a certain level of skill or expertise or that the SEC, FINRA or the SIPC have endorsed Man Investments. Man Investments Inc, 1345 Avenue of the Americas, 21st Floor, New York, NY 10105.

This material is proprietary information and may not be reproduced or otherwise disseminated in whole or in part without prior written consent. Any data services and information available from public sources used in the creation of this material are believed to be reliable. However accuracy is not warranted or guaranteed. © Man 2025