Vale to agree on larger compensation deal for Mariana over Brumadinho

Monday, 12 July 2021 22:14:44 (GMT+3)   |   Sao Paulo
       

Brazilian miner and iron ore producer Vale, along with BHP Billiton and Samarco, may agree on an even larger compensation deal for Mariana as compared to Brumadinho, according to a media report by Estado de Minas.

The settlement, which is under discussion and involves a number of entities, including the three companies, both the Espirito Santo and Minas Gerais state prosecutors, as well as the Brazilian solicitor general's office, known as the AGU, might reach an agreement in 120 days, according to a Minas Gerais state general prosecutor. The 120-day deadline commenced effectively from June 22, 2021.

The parties involved in reaching such an agreement intend to use the Brumadinho settlement as a “mirror” to end the Mariana dispute.

In February this year, Vale reached a BRL 37.68 billion ($7.2 billion) settlement for Brumadinho. The $7 billion deal covers socioeconomic and socioenvironmental projects, which include attending the needs of the affected communities, and payments to help locals cover their expenses post-Brumadinho.

The Minas Gerais state official who unveiled this forecast said the parties are yet to reach a compensation figure.


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