The Brazilian government signed a compensation deal with BHP and Vale over the 2015 disaster, which caused multiple deaths .
Brazil seals $23 billion from mining firms over dam collapse
The Brazilian government signed a compensation deal with BHP and Vale over the 2015 disaster, which caused multiple deaths and huge environmental damage.
An ariel view of village covered in mud near Mariana, southwestern Brazil, on November 6, 2015
The Mariana dam collapse caused one of Brazil’s worst environmental disaster.
Mining giants BHP and Vale on Friday signed a deal with Brazil’s government to pay nearly 132 billion reais ($23 billion, €21.3 billion) in damages for a 2015 dam collapse that triggered one of the country’s worst environmental disasters.
The cave-in, at an iron ore mine in the southeastern town of Mariana, unleashed a giant mudslide that killed 19 people, left hundreds homeless and polluted the length of the Doce River.
The mine was owned by Samarco, a joint venture between Vale and BHP.
Of the 132 billion reais the two mining giants agreed to pay, 100 billion represents “new resources” that must be paid to Brazilian authorities over 20 years.
The first installment of 5 billion is due within 30 days.
The other 32 billion reais is to be allocated as compensation and resettlement costs for about 300,000 of the people affected. The total number of people impacted by the disaster is thought to be much higher.
The government’s solicitor general, Jorge Messias, said the money would allow local authorities to make payouts to families hit by the tragedy and settle bills for environmental repairs.
The two firms had already agreed in 2016 to pay about a tenth of Friday’s agreed sum in damages, but negotiations were reopened three years ago over accusations by the Brazilian government of non-compliance.
More than a hundred lawsuits have been launched against the mining firms over the disaster, including one being heard this week where BHP is contesting liability in London’s High Court.
More than 620,000 complainants, including 46 Brazilian municipalities and several Indigenous communities, are seeking an estimated 36 billion pounds ($47 billion, €43.2 billion) in damages. BHP denies responsibility.
