6th May 2016 06:09
LONDON (Alliance News) - Anglo-Australian miner BHP Billiton PLC on Friday said Brazil's Federal Court of Appeal has ratified the settlement agreement it reached in March over the Samarco dam disaster.
On November 5, a tailings dam at the Samarco project in Brazil burst and flooded the local community, leading to at least 17 fatalities and to the devastation of the local area, displacing many people from the municipalities of Ouro Preto and Mariana in the state of Minas Gerais.
Samarco is a joint venture between BHP and Vale SA, the Brazilian miner.
The pair reached an agreement in March which will cover a total settlement of BRL9.20 billion, or around USD2.30 billion, over 15 years covering the restoration of the environment and communities effected by the dam disaster. The agreement was with the Federal Attorney General of Brazil, the States of Espirito Santo and Minas Gerais and other public authorities.
BHP said this settlement has now been ratified by the Federal Court of Appeal in Brasilia and will provide a framework for the Samarco joint venture to manage the ongoing response to the tragedy.
Earlier this week, BHP was hit with a USD43.00 billion civil lawsuit over Samarco, filed by the Federal Public Prosecution Service of Brazil.
By Sam Unsted; [email protected]; @SamUAtAlliance
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