Vale, BHP Billiton ordered to pay another BRL 10 bi in Mariana case
A federal court in Brazil has ordered mining giants Vale and BHP Billiton to make deposits adding up to BRL 10.34 billion to ensure the repair of environmental damage in Espírito Santo state.
The two are shareholders of Samarco, which was responsible for the dam that burst in Mariana, Minas Gerais state, in 2015, claiming 19 lives and releasing an avalanche of tailings that flowed down the Doce river to its mouth in the neighboring state.
The funds should be made available to finance reparation measures in communities that the companies were reluctant to recognize as affected. Most of them are located in the municipalities of Aracruz, Linhares, São Mateus, and Serra.
The ruling was signed last week by Judge Michael Procopio Avelar in the capital Belo Horizonte The deposit must be made in ten equal monthly payments, the first in 40 days. In case of noncompliance, an order will be issued for the full amount to be blocked in one lump sum.
Vale and BHP Billiton reported they have not yet been notified of the decision, adding that 410,800 people had been compensated by January this year. The organizations note they have allocated BRL 28.42 billion for the actions conducted by the Renova Foundation, created to conduct reparation initiatives as laid forth in the agreement signed in 2016 by the three companies, the state governments of Minas Gerais and Espírito Santo, and the federal government. “The company will manifest itself in due time regarding the decision, which may still be appealed,” Vale’s note to the market reads.
The decision partly grants a joint request from state officials and federal prosecutors asking for the immediate blocking of the entire amount, as they considered that the foundation had been neglecting its duty to include Espírito Santo communities in its efforts.
