Drill and Deal

News / 2024

· ESG, Iron ore

BHP, Vale and Samarco sign a R$170bn settlement over the Mariana dam

The settlement with Brazilian authorities, signed in Brasília, is worth R$170bn, about $30bn. It includes R$38bn already spent, R$32bn of resettlement and environmental work and R$100bn of new payments over 20 years. Vale raised its provision to $4.7bn and BHP said the deal was broadly in line with its $6.5bn provision.

The village of Bento Rodrigues in Mariana, Brazil, buried in mud after the Fundão dam failed in November 2015
Photo: Senado Federal, CC BY 2.0

Why it matters. A tailings failure creates liabilities that last for decades and weigh on the owners long after the mine stops.

Source
Daily Maverick
In the course
Module 10: Risk and jurisdiction