Brazil-based pellets producer Samarco, a 50/50 joint venture between
Brazil’s Vale and BHP Billiton, won’t rebuild the Fundao iron ore waste dam, which burst in November, killing 17 people, the company said.
The Fundao dam burst on November 5 in the city of Mariana, in the state of Minas Gerais. The incident caused destruction within the Bento Rodrigues district and killed much of the life of the Doce River.
Since then, scrutiny over Samarco has increased.
A judge in the state of Minas Gerais froze the assets of both BHP Billiton and Vale in
Brazil, as Samarco didn’t have funds to pay for the resulting damages.
The judge’s decision followed a public lawsuit filed by the nation’s environment authority, Ibama, the country’s water agency, ANA, the national department of mineral production (DNPM), the state of Minas Gerais, among other entities. The lawsuit asked for a BRL 20 billion fine in damages.