Brazil’s Vale to pay 557.7 million reais for Samarco damage

Brazil’s Vale to pay 557.7 million reais for Samarco damage

The money will be used to restore the environment and communities damaged by a 2015 disaster at Samarco.

Vale is the world’s largest iron ore producer. (Reuters pic)
RIO DE JANEIRO:
Brazilian miner Vale said on Thursday it would pay 557.7 million reais (RM581.9 million) in the second half of the year to restore the environment and communities damaged by a 2015 disaster at Samarco, a joint venture it has with BHP Billiton.

The money, Vale said, will come from a separate provision made by the company in the second quarter of 2016.

Brazil’s worst environmental catastrophe ocurred when a dam designed to hold back mine waste burst in November 2015, killing 19 people and leaving a trail of destruction for hundreds of kilometres.

Samarco’s operations have been halted ever since.

On Monday, Samarco, Vale, and BHP Billiton said they had signed a deal with Brazilian authorities that settled a 20 billion-reai (RM20.9 billion) lawsuit related to the accident.

Still looming over Samarco and its parents is a separate lawsuit, worth 155 billion reais (RM161.7 billion). BHP said on Monday that the settlement set a two-year timeline to reach a settlement over that case.

Vale, the world’s largest iron ore producer, also said on Thursday it planned to give a short term credit line worth US$53 million (RM213.9 million) to debt-plagued Samarco to cover operational and repair work in the second half of 2018. BHP announced a similar credit line and payments on Thursday.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.