Brazil miner Vale and pellets producer Samarco, a 50/50 JV between Vale and BHP Billiton, agreed with Brazilian authorities to cover the cleanup costs of the Doce River, following a deadly iron ore waste dam burst in November that killed 17 people and destroyed much of the local ecosystem.
Brazil’s environment minister, Izabella Teixeira, said the two companies expressed their willingness to reach a "transparent" legal settlement.
Both state and federal governments filed a public lawsuit against Samarco asking the company to pay BRL 20 billion ($4.92 billion) in indemnities for the damages caused by the dam burst.
Brazil’s government attorney, Luis Inacio Adams, said the nation should reach a definition over the case by February. He noted there’s a possibility for Samarco, Vale and the government to reach a deal.
Adams explained the BRL 20 billion in indemnities asked by the lawsuit is just an estimate and that the final amount determined in case an agreement is reached could be lower or even higher.