A judge in the state of Minas Gerais froze the assets of both BHP Billiton and Vale in Brazil, as pellets producer Samarco, the JV owned by the two iron ore producers, didn’t have funds to pay for the damages caused by a deadly iron ore waste dam burst in November. The disaster killed 16 people, left hundreds homeless, and killed much of the life of the Doce river.
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.
Samarco was ordered by local courts to pay BRL 20 billion ($5 billion) in damages, but since there was no payment from the JV company, a judge in the state of Minas Gerais ruled Samarco’s owners should be responsible for paying the fine within 30 days.
The judge has blocked the granting of exploration licenses for the two companies in Brazil.
Vale said on Sunday it would appeal the decision. It clarified it is operating normally and is yet to be notified of the court ruling on Friday to block the transfer or sale of mining rights. The Brazilian iron ore producer added the ban prevents it from transferring or selling mining rights, but does not affect iron ore production.