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BHP's Brazil settlement under cloud

Brazil's Superior Court has upheld an appeal from federal prosecutors against the Samarco settlement, reinstating a $US6.2b public civil claim.

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Source: AAP


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BHP Billiton will appeal a Brazilian court's decision to reinstate a civil claim of $US6.2 billion over the fatal Samarco mine disaster.

The court decision casts doubt over an agreement already struck by BHP and its Samarco joint venture partner Vale to pay up to $US2.3 billion over six years.

The dam collapse at the Samarco mine in November caused a massive spill of waste material, polluting a major river and killing at least 17 people, besides leaving hundreds homeless in what has been called the country's worst environmental disaster.

BHP and Vale reached the $US2.3 billion agreement in March with Brazil's federal and regional government authorities, and agreed to set up a fund for restoration work and compensate for damages caused by the tailings dam spill.

That deal was ratified by Brazil's federal court in May, helping settle an original civil claim of about $US6.2 billion.

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BHP said on Friday an appeal by the federal prosecutors office against the settlement was upheld by the Superior Court of Justice, which would have the effect of reinstating the original civil claim.

"BHP Billiton Brasil intends to appeal the decision of the superior court," the company said.

"In the meantime, Samarco will continue to support the long term recovery of the communities and environment affected by the dam failure."

The $US2.3 billion settlement had also dimmed the prospects for a separate $US43 billion civil lawsuit filed by federal prosecutors, who had criticised the settlement as inadequate.


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