25th Oct 2024 16:32
(Alliance News) - BHP Group Ltd announced on Friday it has reached an agreement with Brazilian authorities to settle a lawsuit related to the Fundao dam disaster in 2015, committing to pay BRL170 billion, or USD31.7 billion.
The tailings dam was operated by Samarco Mineracao SA, a 50-50 joint venture of BHP and Vale SA.
BHP and Vale have said previously they would each contribute 50% to cover the Fundao dam failure liabilities.
The Melbourne-based diversified miner said on Friday the settlement aligned with its provision for the 2024 financial year, amounting to USD6.5 billion to cover the dam collapse obligations.
The agreement delivers a full and final settlement of the framework agreement obligations, the Federal Public Prosecution Office claim and other claims by the public authorities linked to the dam failure, BHP said in a statement on Friday.
The mine said the agreement builds on the existing remediation and compensation work already performed, totalling about USD7.9 billion.
BHP said Samarco will 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. The trial for BHP in the UK started on Monday this week.
Shares in BHP were up 1.7% at 2,185.00 pence in London on Friday afternoon, and up 1.7% at ZAR501.00 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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