Brazilian dam burst disaster restoration settlement expected

Bloomberg has reported that a restoration settlement for the dam burst disaster at a BHP Billiton-backed iron ore joint venture in Brazil could be finalised this week.

According to the report, Brazil’s President Dilma Rousseff has met with representatives from the Samarco joint venture owners BHP-Billiton and Vale on Monday to discuss a payment the government hopes will cover part of the $4.9 billion to restore the damaged areas of Minas Gerais state.

Seventeen people died and mining waste poured into Brazilian river systems when a tailings dam at the Samarco iron ore operation burst last November. Payments to victims left homeless have already begun.

A Brazilian court ruled in December that Samarco’s joint owners BHP and Vale were responsible for the environmental damage. Company representatives and government officials will meet again on 28 January to finalise the details.

BHP-Billiton has insisted it will “engage constructively” with the Brazilian government, though it is unclear the size of bill it would be prepared to accept.

“We have said we will do the right thing since the day of this tragic event and have been fully supporting Samarco accordingly,” BHP told Bloomberg.

BHP and Vale have already set up a US$100 million emergency relief fund, through Samarco, and agreed to pay a preliminary deposit to cover compensation and clean-up costs.

Bloomberg Business