Brazilian pellet producer Samarco, a 50/50 JV between Vale and BHP Billiton, said on Friday it plans to dismiss about 600 workers by December this year.
The company said it has accepted proposals from two unions to dismiss the workers under a voluntary dismissal program (VDP), which will reduce the workforce from 1,735 to 1,135 people by December.
Samarco has not resumed operations since November 2015, when a deadly iron ore dam burst killed 19 people and halted production at the pellet producer.
For those who enroll in Samarco’s VDP, the company promised to pay 50 percent of the worker’s wage for each year worked at the company, plus three wages limited to a total of BRL 7,500, and health insurance for six months, effective on the date of dismissal.
In case Samarco does not reach its goal to dismiss 600 people through the VDP, it will have to enforce regular dismissals.