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Brazil finalizes $30 billion compensation agreement with BHP and Vale for 2015 dam collapse | Update on Mining Sector


Brazil has signed a historic 170 billion reais compensation agreement with mining companies BHP, Vale, and Samarco for the Mariana dam collapse in 2015, one of the country’s worst environmental disasters. The collapse of the dam near the city of Mariana unleashed a wave of tailings that killed 19 people, left hundreds homeless, flooded forests, and polluted the Doce River.

The agreement, signed on Friday, includes a total payment of 132 billion reais to be made over the next 20 years, with an initial 5 billion reais installment due within 30 days. The companies will pay 100 billion reais to public authorities, while 32 billion reais will be allocated to compensate affected individuals and fund reparation actions. This is in addition to the 38 billion reais already disbursed by the miners.

The resources from the agreement will be used to compensate families for financial losses, fund environmental recovery efforts in Minas Gerais and Espirito Santo, and support the resumption of economic activities, health, and infrastructure in the affected areas. BHP expects the outflows under the agreement to align with its existing Samarco provision, and the agreement could potentially limit legal action against the companies both in Brazil and abroad.

Overall, the agreement aims to provide justice to the families directly affected by the disaster and to fund long-term recovery and rebuilding efforts in the region. The annual payments are scheduled to continue until 2043, with the last installment set at 4.41 billion reais. The signing of the agreement represents a critical step towards addressing the aftermath of the Mariana dam collapse and ensuring accountability for the environmental and human impact of the disaster.

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Photo credit www.aljazeera.com

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