Both Vale and BHP Billiton have started to feel in their pockets the impacts of the Samarco iron ore waste dam burst that caused the death of 12 people in November.
A media report on Friday said Brazil is planning to sue Vale and BHP for BRL 20 billion ($5.2 billion) as a result of the damages their JV owned company caused to the environment, Izabella Teixeira, environment minister, told reporters.
Aditionally, Vale and BHP have left the Bovespa stock exchange sustainability index due to the environmental disaster. Media reports noted Vale was the company that had the most weight in the Bovespa’s sustainability index.
A United Nation’s (UN) report found out that the mud from the dam that burst at Samarco is toxic. The statement contradicts claims by Samarco, which said earlier in November that the mineral’s waste wasn’t toxic. UN's Office of the High Commissioner for Human Rights said in a statement the residue "contained high levels of toxic heavy metals and other toxic chemicals."
Samarco opposed UN’s findings and said both pre- and post-disaster tests showed the mud presents no danger to human health and does not contain water contaminants.
On Friday, Vale’s CEO, Murilo Ferreira, said regulatory laws in the European Union don’t allow Vale to interfere in Samarco’s management, as the two companies are seen as competitors.