Brazilian miner Vale, one of the shareholders of pellet producer Samarco, announced that it has reached a deal together with its partner BHP, Samarco, and some of Samarco creditors, for a binding agreement, “that sets the parameters of Samarco’s debt restructuring to be implemented through a consensual restructuring plan, subject for approval by the creditors and confirmed by the judicial reorganization court.”
According to the announcement, Samarco will emerge from the judicial reorganization with a lean capital structure, with payments to the financial creditors to be made over time, in line with its operational ramp-up and cash flow generation.
The contribution of Samarco to the fund of reparation is estimated at $1.0 billion, to be expended between 2024 and 2030, with additional payments depending on the excess cash flow generated by the company.
The Samarco Mariana waste dam, located in the southeastern state of Minas Gerais, collapsed in 2015, in what is considered as the largest environmental disaster in Brazilian history.