Brazilian pellet producer Samarco, a 50/50 joint venture (JV) between Vale and BHP Billiton, is reportedly close to a settlement with local prosecutors, according to Bloomberg. Citing unnamed sources, the media report said the final details of a deal should be soon released.
Samarco halted operations in November 2015 following a deadly iron ore waste burst that killed 19 people; the company has struggled to get remaining licenses following the halt.
Both Vale and Samarco have already reached several court extensions to settle down a multi-billion-dollar lawsuit filed by public prosecutors. The deal would reportedly end two separate lawsuits: a BRL 155 billion ($41.07 billion) claimed filed by public prosecutors, and a BRL 20 billion ($5.3 billion) case filed by the state of Minas Gerais.
A deal would also help Samarco resume talks with creditors, as it would need to restructure its business to pay debt and resume growth.
Vale recently denied it was in talks to buy BHP Billiton’s 50 percent stake in the business.