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Definitive settlement is reached on Samarco dam collapse

Monday, 28 October 2024 01:26:19 (GMT+3)   |   Sao Paulo
       

In a ceremony on October 25 in Brazil, with the presence of the Brazilian president, Luiz Inácio Lula da Silva, a definitive agreement about the repair of damages caused by the collapse in 2015 of the Samarco Fundão rejects dam, Vale, BHP Brasil, Samarco, the federal government and the governments of the states of Minas Gerais, and Espírito Santo have reached a definitive deal on the subject.

Vale’s new CEO, Gustavo Pimenta, said in a statement, “The Definitive Settlement enabled a mutually beneficial resolution for all Parties under fair and effective terms, while creating definitiveness and legal certainty. It is the result of a high-level mediation process conducted by the Brazilian Federal Court of Appeals of the 6th Region, with open dialogue and transparency. The engagement of Brazilian authorities and public entities ensured legitimacy to the settlement, which was supported by social, environmental, and technical criteria. This important agreement also reinforces our commitment to Brazilian society and to a better future for the people, communities and the environment."

As previously informed by SteelOrbis, the agreement covers BRL 170 billion ($30 billion), of which BRL 38 billion has already been spent, while the balance BRL 132 billion will be paid along the next 20 years.

During the ceremony, Lula da Silva made harsh comments on the corporate culture in Brazil, most of the times considering social expenditures as a waste of resources.

He added that the investment that could have avoided the accident was certainly a fraction of BRL 170 billion, but if the CEO of Vale decided at that time to make such an investment, it would be called by his peers irresponsible for spending unnecessary money.  

“Such amount was probably paid as dividends," he concluded.


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