Brazil authorities expect Mariana dam disaster deal to close in December

The authorities involved in the process of repairing the dam collapse tragedy in Mariana expect to close a deal in December, Brazilian newspaper O Tempo reported.

The disaster occurred on Nov. 5, 2015, when the Fundão tailings dam at the Germano iron ore mine near Mariana, Minas Gerais, suffered a failure, resulting in flooding that devastated downstream villages and killed 19 people.

The dam, owned by Samarco – controlled by Vale and BHP – burst, releasing 39.2 million m³ of tailings waste in the Rio Doce Basin. It was the biggest environmental disaster ever in Brazil.

According to the newspaper, the reparation should be higher than that of the Brumadinho disaster, for which Vale paid R$37.8 billion ($7.72 billion).

The negotiation is currently conducted by the Federal Regional Court of the 6th Region (TRF-6), in Minas Gerais, O Tempo reported. Samarco and its shareholders, Vale and BHP, entered the final stretch on Nov. 8, after a court decision.

Since then, according to O Tempo, daily meetings between the parties have taken place.

After the collapse in 2015, a transaction term and conduct adjustment (TTAC) was signed by the miners and various public authorities in Brazil and created the Renova Foundation in 2015.

The foundation has already invested R$28.1 billion ($5.74 billion) in reparation and compensation initiatives, according to Vale.

“This agreement comes to solve a problem that the courts will not solve. Everything that was done back then (by Renova) did not please anyone, not even the companies, which have already spent a lot, but have spent badly. We are in the final phase,” Attorney General Jarbas Soares Júnior told O Tempo.

Samarco said it remains committed to fully repairing impacts and that “it effectively participates in broad technical discussions, seeking renegotiation and a definitive solution for the programs that make up the TTAC.

Vale said it is committed to the renegotiation and prioritizes the people affected. As part of the negotiation process, it is evaluating the terms of the proposal, especially regarding the speed, efficiency and definitiveness of the reparation process, the Brazilian newspaper reported.

BHP stated that it is absolutely committed to reparation and compensation actions and that it actively participates in TTAC renegotiation discussions and reinforces that, since 2015, it has been willing to collectively seek solutions that guarantee fair and full reparation to those affected.

Last week, a British court rejected Vale’s appeal against its inclusion in a lawsuit worth at least $46 billion against Vale, Samarco and BHP due to the disaster.

The Court of Appeal refused the miner permission to appeal the dismissal of its challenge to the jurisdiction of the English Court.

This means that if the claimants are successful in holding BHP liable for their losses, BHP’s third party claim against Vale will proceed in the English Court, where BHP will seek to hold Vale liable for 50% or more of any damages awarded to the claimants.

The lawsuit is the largest group litigation in English legal history and involves over 700,000 victims.

THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM