Vale, the world's second-largest iron ore producer, is undertaking further inspections of the Forquilha III dam at the Fabrica mine in Ouro Preto, following the discovery of surface cracks during a routine check.

The company has said that the dam, which is at emergency level three, the highest for Vale's dams, remains stable.

Located in the Brazilian state of Minas Gerais, the Forquilha III dam is under close scrutiny after the routine inspection.

In a securities filing, Vale stated that the dam is "permanently monitored" and that additional checks are being conducted to ensure its safety.

"Vale reinforces that the structure’s stability conditions remain unchanged," the miner was quoted as saying by Bloomberg.

 The company has communicated with authorities regarding the investigation and corrective measures being taken at the dam. It is also focused on "the reduction of its emergency level".

In preparation for any potential risks, Vale has implemented a "downstream containment structure" and evacuated communities within the "self-rescue zone".

The latest move follows the tragic events at the Samarco iron ore mine in 2015, where a tailings dam collapse led to the worst environmental disaster in Brazilian history, resulting in 19 fatalities, displacing hundreds and polluting waterways with toxic mining waste.

The Samarco mine is a joint venture between Vale and BHP.

Four years later in 2019, the failure of Vale's Brumadinho dam killed 270 people and caused significant environmental destruction, leading to a loss of more than $4bn in Vale's market value.

The Security and Exchange Commission sued Vale over this failure, accusing the company of falsifying dam safety audits and obtaining fraudulent stability certificates since 2016.