7th Nov 2024 06:59
(Alliance News) - BHP Group Ltd said on Thursday the Supreme Court of Brazil has ratified the settlement that ended the long-running Fundao dam lawsuit.
Late last month, BHP and its joint-venture partner Vale SA reached an agreement with Brazilian authorities that will see the two mining groups pay BRL170 billion, or USD31.7 billion, related to the dam disaster in 2015.
The tailings dam was operated by Samarco Mineracao SA, a 50-50 joint venture of BHP and Vale.
BHP said on Thursday the financial value of the agreement provides reparation for the impacts of the dam failure that will be delivered to the people, communities and environment.
The Melbourne-based diversified miner said its unit BHP Brasil will continue to focus on supporting the long-term recovery of the communities and environment affected by the dam failure.
Late last month, BHP had said the settlement aligned with its provision for the 2024 financial year, amounting to USD6.5 billion to cover the dam collapse obligations.
The miner said then the agreement builds on the existing remediation and compensation work already performed, totalling about USD7.9 billion.
BHP said Samarco would make first payment 30 days after the court confirms the agreement and subsequent payments will become payable in six months after the first payment and annually thereafter for a total of 20 years.
BHP and Vale face other class action lawsuits in Australia, the UK, and the Netherlands.
By Artwell Dlamini, Alliance News reporter
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