Vale and BHP, alongside their joint venture Samarco, are set to sign a significant agreement to pay 170 billion reais (approximately $29.85 billion) in compensation for the 2015 dam collapse in Mariana, Brazil. Here are the key details:
Compensation Framework: The agreement, expected to be finalized this week, aims to resolve over a hundred lawsuits against the companies in Brazil and potentially limit legal actions abroad. The total compensation includes 100 billion reais to be paid over 20 years for various reparative projects and initiatives.
Ongoing Obligations: In addition to the primary compensation, Vale and BHP will still need to fulfill 32 billion reais in obligations, which include individual compensations for those affected and environmental recovery efforts. This total also accounts for 38 billion reais already paid since the disaster.
Impact on Legal Actions: The deal is anticipated to eliminate many public civil actions in Brazil and may impact class action lawsuits filed in London and the Netherlands. The agreement is seen as evidence that Brazilian authorities can effectively handle such cases, potentially weakening the basis for legal actions abroad.
Continued Legal Pressure: Despite the agreement, new lawsuits related to undisclosed damages may still arise in the future. The ongoing trial in London, led by law firm Pogust Goodhead, seeks to hold BHP accountable for negligence beyond just financial compensation.
Corporate Responses: Both Vale and BHP have expressed their commitment to fully addressing the damages caused by the collapse. Samarco has also reiterated its dedication to repair efforts.