BHP Billiton: Samarco Update

Samarco Mineração (Samarco) and its shareholders, Vale (Vale) and BHP Billiton Brasil (BHP Brasil), have entered into an agreement (Amendment Agreement) with the Federal Prosecutors’ Office in Brazil (Federal Prosecutors) and the Minas Gerais State Prosecutors Office (State Prosecutors). The Amendment Agreement amends the preliminary agreement entered into on 18 January 2017 in relation to the Samarco dam failure (Preliminary Agreement).

The Preliminary Agreement outlines the process and timeline for negotiation of a settlement of the BRL 155 billion (approximately US$47.6 billion) and BRL 20 billion Public Civil Claims (approximately US$6.1 billion) relating to the dam failure (Public Civil Claims). It also provides for the appointment of various experts to advise the Federal Prosecutors.

The Preliminary Agreement suspends a BRL 1.2 billion (approximately US$0.4 billion) injunction order under the BRL 20 billion Public Civil Claim and requests suspension of that claim, with a decision pending.

The BRL 155 billion Public Civil Claim is also suspended, including the BRL 7.7 billion (approximately US$2.4 billion) injunction requested by the Federal Prosecutors. Under the Preliminary Agreement, Samarco, Vale and BHP Brasil have provided interim security to the Court.

Click here to read the full text release. 

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