Brazilian pellet producer Samarco, a 50/50 joint venture between Vale and BHP Billiton, said on Thursday it has reached an agreement with local unions Metabase and Sindimetal in the states of Minas Gerais and Espirito Santo, respectively, to extend an existing layoff for another five months.
The layoff period will be extended from November 1 this year to March 31, 2018, Samarco said, adding that if the workers approve the layoff proposal at an upcoming meeting, they will continue receiving their wages. The layoff covers 800 employees.
Samarco halted operations in November 2015 following a deadly iron ore waste dam burst, which killed 19 people.
The company said it has utilized differed labor mechanisms since operations were halted, including paid leave, collective vacations, and suspension of the workers’ contracts.
Samarco needs pending licenses to resume operations, although the company does not have an expected restart date.