28th Nov 2015 09:00
LONDON (Alliance News) - The Brazilian federal government and two states on Friday tabled plans to sue BHP Billiton PLC and Vale SA, the two miners behind the Samarco joint venture, over the tailings dam which burst at their mine in the country earlier this month, causing an environmental catastrophe in the region.
The Attorney General of the Union, the Brazilian prosecutor, and the Minas Gerais and Espirito Santo states, have filed a civil suit against Anglo-Australian BHP and Brazil-based Vale, along with the Samarco joint venture itself, for up to BRE20.0 billion, or USD5.2 billion, for the environmental damage caused by the Fundão dam bursting.
The AGU said the funds from the suit would be used to deal with the impact the tailings dam burst has had on the local region and on the Rio Doce river, which a UN report this week claimed had been severely polluted by the waste spilled when the dam burst. The funds would also be used to provide compensation for the people who have been made homeless by the dam bursting.
The AGU's announcement on Friday came the same day BHP and Vale said they will work with Samarco to create a voluntary, non-profit fund to support the clean-up at the Rio Doce river system which has been affected by the dam burst.
The pair said the fund will be co-sponsored by BHP and Vale and said the initial value had not yet been determined.
BHP Chief Executive Andrew Mackenzie and Vale CEO Murilo Ferreira, in a joint statement announcing the new fund, said the two companies "are committed to supporting the rehabilitation of those areas of the Rio Doce system impacted by the recent tragedy."
"The immediate focus for Samarco has been securing the safety of the operations and supporting the humanitarian and environmental response. Plans must also be made for the recovery and rehabilitation of the affected environment," they added.
On Thursday, BHP had moved to quell speculation, driven by the report from the UN, that the waste released from the tailings dam burst at Samarco was toxic.
Earlier this month a dam breach occurred at the Samarco iron ore operation in Minas Gerais in Brazil, run jointly by BHP and Vale. The Samarco operations include a three-tiered tailings dam complex. Within this complex, the Fundão dam failed and the downstream Santarém dam also was affected.
Operations at the main remain suspended amid ongoing investigations by authorities into the incident and as the two companies finalise rectification plans.
A probe conducted by the United Nations claimed the waste from the mine spill is toxic and said the steps taken by BHP and Vale to prevent harm were not sufficient. The UN Office of the High Commissioner for Human Rights said evidence showed the 50.0 million metric tonnes of iron ore waste released from the dam rupture contained high levels of toxic heavy materials and other toxic chemicals.
BHP, however, said the tailings released into the Rio Doce were comprised of clay and silt material from the washing and processing of earth containing iron ore, which is naturally abundant in the local area. It added that, based on available data, the tailings are chemically-stable.
The Samarco joint venture also issued a statement which said further tests carried out after the incident confirm the waste is not hazardous to human health.
By Sam Unsted; [email protected]; @SamUAtAlliance
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