3rd Mar 2016 06:32
MELBOURNE (Alliance News) - Mining giant BHP Billiton PLC on Thursday announced that Samarco Mineracao SA and its two shareholders, Vale SA and BHP Billiton Brasil LTDA, have entered into an agreement with Brazilian authorities for the restoration of the environment and communities affected by the Samarco dam failure on 5 November 2015.
BHP stated that Samarco agreed to pay BRL2 billion this year, BRL1.2 billion in 2017 and another BRL1.2 billion in 2018. Annual contributions for 2019, 2020 and 2021 will vary between BRL800 million and BRL1.6 billion depending on project needs.
The term of the agreement is 15 years, renewable for periods of one year successively until all obligations under the Agreement have been performed.
"To the extent Samarco does not meet its funding obligations, each of Vale and BHP Billiton Brasil is liable in proportion to its 50% shareholding in Samarco," the Melbourne-based miner stated.
BHP Billiton Chief Executive Officer, Andrew Mackenzie said: "This agreement is an important step forward in supporting the long-term recovery of the communities and environment affected by the Samarco dam failure. It provides a platform for the parties to work together to support the remediation of affected areas".
Copyright RTT News/dpa-AFX
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