Brazilian authorities have reached an agreement with pellets producer Samarco, a 50/50 JV between Vale and BHP Billiton, for compensating the damages caused by a deadly iron ore waste dam burst in November.
Government’s general attorney, Luis Inacio Adams, said the arrangement will allow company to pay for the damages through specific programs. Adams said the Brazilian government expects to reach agreement with Samarco by Friday, settling down a BRL 20 billion ($4.9 billion) lawsuit for the Mariana disaster.
Government’s general attorney, Luis Inacio Adams, said the arrangement will allow company to pay for the damages through specific programs. Adams said the Brazilian government expects to reach agreement with Samarco by Friday, settling down a BRL 20 billion ($4.9 billion) lawsuit for the Mariana disaster.
Despite the willingness of both sides to reach an agreement, the deal won’t protect executives from any potential prosecution, Adams noted. “The discussion is going clause by clause—the devil is in the details,” the general attorney said.
Marilene Ramos, head of Brazil's environmental protection agency, Ibama, told media that a formal signing of the agreement should happen before the end of the month.
Backed by both Vale and BHP, Samarco is expected to create a foundation that will manage the compensation funds and repair the damages it caused to the environment, a media report added. However, Samarco still needs to improve its environmental recovery plan, Ramos said.
EBC, Brazil’s news agency, said Wednesday is the final day for Samarco to complement its environmental recovery plan to restore the Doce river, which was severely affected by the dam burst. Ibama labeled Samarco’s recovery plan for the Doce river as “generalist” and “superficial.”
Additionally, Samarco reached an agreement with the Minas Gerais state court and the local Public Ministry, a body of public prosecutors, to hire an independent audit to analyze the repair and the stabilization of the company’s dams in Mariana city.