Vale and BHP Billiton reached on Tuesday a compensation agreement with public prosecutors following the November 2015 Mariana disaster, authorities said on Wednesday.
The incident killed 19 people and halted production at pellets producer Samarco; Vale and BHP Billiton are equal shareholders at Samarco. Samarco also signed the agreement.
According to public prosecutors at Brazil’s Ministerio Publico in Minas Gerais state (MPMG), the agreement sets a three-month timeline for Vale and BHP Billiton to offer initial compensation proposals for the families affected in the incident.
The compensation agreement covers material and moral damages, prosecutors said. After the three-month deadline, all parties have one year to conclude final compensation negotiations.