BHP Billiton Agrees To Compensation Agreement For Samarco Dam Failure
A fireman rescues a dog in one of the mud swept communities.
The Agreement provides a long-term remedial and compensation framework for responding to the impact of the Samarco tragedy.
As part of the agreement, Samarco, Vale and BHP Billiton Brasil are to create a Foundation that will develop and execute environmental and socio-economic programs to remediate and provide compensation for damage caused by the Samarco dam failure.
The parts of the agreement are split into two types which include Reparatory Program, which are to restore the environment and local communities whilst the Compensatory Program is to provide compensation where remediation is not possible.
The the length of the agreement is for the period of 15 years. In 2016, BRL2 billion (approximately US$500 million) is to be paid into the foundation (less the amount already spent). In 2017, BRL1.2 billion (approximately US$300 million) in 2017, and BRL1.2 billion (approximately US$300 million) in 2018.
The contributions for 2019, 2020 and 2021 will vary between BRL800 million (approximately US $400) and a limit of BRL1.6 billion (approximately US$400 million) dependent on the projects being undertaken.
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.”
The Foundation will be managed through a seven member Board, with Samarco, BHP Billiton Brasil, and Vale appointing two members each and the Brazilian Authorities appointing one member.
The Agreement is subject to Court approval. If approved, the Agreement will settle the civil public claim commenced on 30 November 2015.
