21st Oct 2024 08:00
(Alliance News) - BHP Group Ltd confirmed on Monday that negotiations to settle claims linked to the Fundao dam disaster in 2015 continue in Brazil.
The tailings dam was operated by Samarco Mineracao SA, a 50-50 joint venture of BHP and Vale SA. Settlement talks are between the two company, Samarco, Brazilian government, and Brazilian prosecutors.
"The negotiations between the parties are ongoing and no final agreement has been reached on the settlement amount or terms," BHP said on Monday.
Any settlement is subject to finalisation of the terms and conditions of a final settlement agreement, entry into final and definitive settlement documentation by the companies and public authorities and approvals by the boards of the companies and by the public authorities," the Melbourne-based diversified miner said.
The negotiations are being conducted by the Brazilian Federal Court and the National Council of Justice in Brazil, with the oversight of a court-appointed mediator and the participation of public prosecutors and public defenders.
The parties are negotiating a settlement proposal that would provide a total financial value of about USD31.7 billion. BHP and Vale have said they will each contribute 50% for claims related to the Fundao dam failure.
BHP and Vale face other class action lawsuits in Australia, the UK, and the Netherlands. The trial for the UK action complaint commences on Monday this week.
BHP said it will continue to defend the action, which it believes is unnecessary because it duplicates matters already covered by the ongoing reparation work and legal proceedings in Brazil.
BHP shares closed 1.4% higher at AUD42.64 each in Sydney on Monday.
By Artwell Dlamini, Alliance News reporter
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