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BHP gets more time for Samarco claims deal

A Brazilian court has extended the deadline for negotiating settlement of public civil claims by BHP and its Samarco joint venture to April 2018.

Aerial shot of devastation caused by dam collapse
Devastation left by the 2015 dam collapse at the Samarco mine in Brazil. (AAP)

A Brazilian court has granted an additional 150 days for BHP Billiton, Vale and their joint venture Samarco to negotiate a settlement of multi-billion dollar public civil claims over the 2015 mine dam collapse in that country.

The companies are facing two claims worth $US47.6 billion and $US6.1 billion ($A63 billion and $A8.1 billion), respectively, in relation to the incident that killed 19 people and led to widespread environmental damage.

They separately are also facing criminal proceedings in Brazilian courts.

Samarco, BHP and Vale in January agreed to support social and environmental programs, as well as fund local municipalities while negotiations continued.

That preliminary deal also included an interim security worth $US395 million in insurance bonds, $US30 million in liquid assets, and a charge of $US245 million over Samarco's assets.

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BHP on Tuesday announced that the companies had received an extension until April 2018 to continue negotiations for the settlement of the public civil claims.

They have also agreed for state prosecutors to join the January, 2017, preliminary agreement that set the process and timetable for negotiating a settlement, and have consented to additional community consultation.

Operations at Samarco have remained suspended as talks continue with the government to obtain the required environmental licences.

At 1100 AEDT, BHP Billiton shares were up 0.22 per cent at $27.18 in a firm Australian market.


2 min read

Published

Source: AAP


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