Brazil judge ratifies dam burst agreement

A settlement between the Brazilian government and the mining company Samarco and its owners BHP Billiton and Vale SA has been ratified by a judge.

A Brazilian judge has ratified the settlement Samarco and its owners, BHP Billiton and Vale SA, signed with the Brazilian government in March to cover damages for a deadly dam spill last year, Vale says.

Thursday's move potentially saps some of the energy from a separate $US44 billion ($A59 billion) lawsuit filed by federal prosecutors on Tuesday who criticised the settlement as insufficient.

The agreement will see Samarco, BHP and Vale pay a government-estimated 20 billion reals ($A7.5 billion) over 15 years to cover and repair damages.

Vale, however, has said it expects to pay far less than that due to the way the deal is structured, calculating future payments depending on how much work remains to be done.

"It's a very important step because you remove any uncertainty about the agreement's validity," said Marilene Ramos, President of Brazil's federal environment agency Ibama which formed part of the settlement.

"The programs outlined in the agreement can now be implemented by the companies," Ramos added, referring to the environmental reparation plan which includes work on sewage, landfill, reforestation and water treatment.

The settlement has been strongly criticised by federal prosecutors who called it little more than a "letter of intent" in their lawsuit.

"It is absolutely insufficient," said Jorge Munhs de Souza, one of the prosecutors working on the case.


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Source: AAP



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