According to Brazil’s Federal Public Ministry (MPF), a taskforce estimated the social, environmental and economic impact of the disaster to be 155 billion real ($US43 billion or $A58 billion).
“This value was based on costs already incurred for costs of repairing the damage caused by the Deepwater Horizon disaster, which occurred in the Gulf of Mexico in 2010, as acknowledged by the company British Petroleum, responsible for the leak of about 4.9 million barrels of oil which would have directly impacted 180,000sq.km of marine waters and killed 11 people,” MPF said in a translated statement.
“It is estimated, based on preliminary studies, that human, economic and environmental impacts caused by the disruption of the Fundão dam are at least equivalent to those verified the Gulf of Mexico.
“It does not seem credible, or technique, or morally, that the value of half human, cultural and environmental environment in Brazil is lower than in other countries.”
BHP said it had not received formal notice of the claim.
“BHP Billiton remains committed to helping Samarco to rebuild the community and restore the environment affected by the failure of the dam,” the company said in a statement this morning.
In March, BHP and Vale entered into a $US2.4 billion settlement agreement with Brazilian authorities for long-term remediation and compensation.
That agreement settled the 20 billion real ($US5.1 billion) civil public claim against Samarco initiated by the Brazilian authorities immediately after the collapse.
BHP noted today that the agreement was still subject to court approval.
“We believe that the agreement (once approved by the court) provides the long-term remedial and compensation framework for responding to the impact of the Samarco tragedy and the appropriate platform for the parties to work together,” BHP said today.
The November 5 dam collapse last year killed at least 17 people and left hundreds homeless.
RBC Capital Markets analyst Paul Hissey believes the litigation, along with other proceedings, are being conducted simultaneously across numerous jurisdictions.
“The results of these separate activities are likely to take much longer to resolve and will likely continue to provide some overhang on the stock and could have potential for further financial impact (in our view),” he said.
“The settlement reached in March is likely achievable given BHP's current financial position (assuming complete funding of its 50% share); however, this new claim and others underway may present far more punitive financial impost.”
Shares in BHP slumped by 7.8% to $A19.10, its lowest price in around three weeks.
