REGULATION

Samarco blow for BHP, Vale

Brazilian court reinstates 20 billion real ($US6.2 billion) civil claim against Samarco owners BH...

Kristie Batten
Samarco blow for BHP, Vale

BHP and Vale reached a $US2.4 billion settlement with Brazilian authorities in March over the November 2015 Samarco tailings dam collapse which killed 17 and left hundreds homeless.

The deal suspended the public claim, which sought the establishment of a 20 billion real compensation and clean-up fund.

The settlement agreement was ratified by Brazil’s Federal Court of Appeal in early May, but the Federal Prosecutors’ Office appealed the ratification.

Overnight, the Superior Court of Justice in Brazil issued an interim order suspending the decision to ratify the settlement agreement.

The effect of the interim order is to reinstate the 20 billion real public civil claim.

“BHP Billiton Brasil intends to appeal the decision of the Superior Court of Justice,” BHP said in a statement this morning.

“In the meantime, Samarco will continue to support the long-term recovery of the communities and environment affected by the dam failure.”

The partners are also facing a separate claim of 155 billion real ($US48.2 billion), made by Brazilian prosecutors in May, based on estimates of the social, environmental and economic impacts.

The value of the claim was based on the costs to repair the damage caused by the Deepwater Horizon spill in the Gulf of Mexico in 2010.

“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,” authorities said.

“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.”

Vale labelled the claim as “unjustified”.

Despite the news, BHP shares were 3.3% higher at $A19.27 this morning.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.