Samarco, Vale And BHP Settle With Brazilian Authorities Over Dam Failure

(RTTNews) - Mining giant BHP Billiton (BHP.AX, BLT.L, BBL, BHP) announced that Samarco Mineracao S.A and its two shareholders, Vale S.A (VALE) and BHP Billiton Brasil LTDA or BHPB Brasil, have entered into an agreement with Brazilian authorities for the restoration of the environment and communities affected by the Samarco dam failure on 5 November 2015.

BHP stated that Samarco agreed to pay 2 billion reais this year, 1.2 billion reais in 2017 and another 1.2 billion in 2018.Annual contributions for 2019, 2020 and 2021 will vary between 800 million reais and 1.6 billion reais depending on project needs.

The term of the Agreement is 15 years, renewable for periods of one year successively until all obligations under the Agreement have been performed.

"To the extent Samarco does not meet its funding obligations, each of Vale and BHP Billiton Brasil is liable in proportion to its 50 per cent shareholding in Samarco, the Melbourne-based miner stated.

BHP Billiton Chief Executive Officer, Andrew Mackenzie said: "This Agreement is an important step forward in supporting the long-term recovery of the communities and environment affected by the Samarco dam failure. It provides a platform for the parties to work together to support the remediation of affected areas".