Brazilian Government Closer to Agreement with Samarco Mineracao

Reuters reported that according to Brazil’s attorney general, Samarco Mineracao and the Brazilian government are closer to settling a $4.8-billion lawsuit related to a November tailings dam breach.
Samarco Mineracao is a 50/50 joint venture between Vale SA (NYSE:VALE) and BHP Billiton Ltd. (ASX:BHP,LSE:BLT,NYSE:BHP). Brazil is suing Samarco Mineracao because of the breach.
As quoted in the market news:

The two sides met in Brasilia on Thursday and talks have “advanced significantly” with the likelihood that the outline of an accord can be completed by early February, said Attorney General Luis Inacio Adams, addressing reporters after the meeting.
“Negotiation of the agreement is under way and we made considerable progress today,” said Adams. “We agreed on the actions that have to be carried out. There was convergence between the companies and federal and state governments on what has to be done.”
Once agreement is reached and financing provided for the 38 agreed-upon actions – which would resolve the social and environment impact of the disaster – Samarco would be allowed to restart operations.
Adams noted that the clean-up work would take up to ten years and Samarco would not have to pay all at once. He added that Vale and BHP would have to guarantee Samarco’s financial commitment to the recovery plan.

Click here to read the full Reuters report.