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Mining giants offer $39B in compensation

Samarco
Samarco

Victims of a catastrophic resources infrastructure failure could be reimbursed for further damages.

BHP, Vale and their Samarco joint venture recently increased their compensation offer for the 2015 Samarco dam collapse to US$25.7 billion (A$39B).

The amount includes:

  • R$72B (A$21.3B) cash payment over more than a decade to Brazil’s federal government, states of Minas Gerais and Espírito Santo and relevant municipalities
  • R$37B (A$11B) in remediation and compensation
  • R$18B (A$6B) in obligations performed by both Samarco and the Renova Foundation.

BHP Brasil will spend US$6.5B (A$9.8B) on assessing the estimated cost of resolving all aspects of the Federal Public Prospection Office claim and the framework agreement obligations.

“Negotiations between the parties are ongoing and no final agreement has been reached on the settlement amount or terms,” the proponent said in a public statement.

“BHP Brasil remains fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil through the Renova Foundation.”

About 430,000 affected residents have already been paid indemnities and emergency financial assistance. About 85 per cent of resettlement cases for communities impacted by the dam failure were complete at the time of publication.

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