BHP, Vale, authorities agree to extinguish $US5.3 billion dam claim
BHP Billiton Brasil, the miner Vale and Brazilian public authorities have reached an agreement to extinguish a $US5.3 billion lawsuit related to a dam failure in 2015 that killed 19 people and destroyed several towns.
Under the deal the mining companies have agreed to enhance community participation in decisions about existing compensation and remediation programs already underway in the area affected by the Fundao tailings dam disaster at the Samarco joint venture in Brazil.
The agreement is a significant milestone for the parties responding to the disaster, but is not yet a full resolution to the shocking event of November 2015.
In a statement BHP said the agreement also established a process to progress settlement of a BRL155 billion (about $US41.5 billion) Civil Claim.
Under the terms of the agreement the parties have agreed to dismiss other public civil actions that duplicate the BRL155 billion civil claim.
BHP said the new “Governance Agreement” was conditional on Brazil’s federal government signing the deal, and was also subject to ratification by the 12th Federal Court of Minas Gerais.
The new agreement also allows for the $US41.5 billion civil claim to be suspended for two years, after the ratification of the new governance agreement.
“During the two year period, the parties will work together to design a single process for the renegotiation of the (remediation and compensation) programs and progress settlement of the BRL155 billion Civil Claim.
“The renegotiation process will take into account the principles and rules established under the Framework Agreement, and will be aimed at improvement of the programs, with the involvement of the affected communities,” BHP said in a statement.
BHP also said a network of local commissions had been established along the Rio Doce river, “to secure community participation” in decision making relating to the remediation and compensation programs.