Samarco, Vale and BHP Billiton seeking deal over mining disaster

The federal government and Minas Gerais and Espirito Santo states indicated Monday (Jan. 18) that they may cut a deal with the companies liable for the social, environmental, and economic losses caused by the collapse last November of Fundão mining dam in Mariana, Minas Gerais, owned by Samarco mining company.

According to Environment Minister Izabella Teixeira, Vale and BHP (Samarco's parent companies) are willing to comply with the court order to recover the Doce river basin by agreement with the federal government and the governments of both states. After the disaster, the state and federal governments filed a lawsuit seeking damages of at least $4.95 billion.

The court granted an injunction imposing a number of obligations on the mining companies, and they submitted a draft agreement. Representatives of the parties are meeting in Minas Gerais on Tuesday (19) to discuss it further. The minister added that Vale contacted the basin recovery committee on behalf of BHP and Samarco to let them know it was willing to make a deal.

“They (Vale) want to use all required resources and be accountable about all their actions, and is willing to partner with the other companies to help recover the Doce river basin. They'd rather make an agreement than litigate forever. We'll be sitting before the judge and the prosecutors and seek an agreement,” the minister said.

Attorney-General Luís Inácio Adams says the agreement may be completed, and the government expects to make a decision by early February. “Any agreements must be founded on clear economic terms to ensure funding for the actions throughout implementation and to show clearly that the recovery is in progress indeed,” he said.

The $4.95 billion figure “is an estimate, there are no definite figures. The most important thing is focusing on the actions. We're not carving out money for ourselves, we want to make things happen,” the Attorney-General said.

Minister Teixeira said the ruling established an initial payment of $500 million, and noted the resources should be managed by a private party. According to Espírito Santo Attorney-General Rodrigo Rabello, it is extremely important that all three companies are engaged in the agreement.

On November 5 last year, the collapse of the Fundão tailings dam spilled 32 million cubic meters of mining sludge into the Doce river. The disaster resulted in 17 people dead and caused serious environmental damage to the river and the sea.

Translated by Mayra Borges

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