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Brazil states ask court to double what Vale, BHP should pay for dam burst
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Brazil states ask court to double what Vale, BHP should pay for dam burst
May 14, 2024 6:05 PM

RIO DE JANEIRO, May 14 (Reuters) - Two Brazilian states

have asked a court to more than double the amount that miners

Vale and BHP, plus a jointly owned tie-up, must pay in damages

for a 2015 deadly tailings dam failure, according to a legal

document seen by Reuters on Tuesday.

In January, a Brazilian federal judge ruled that Vale

, BHP and their joint venture Samarco must

pay 47.6 billion reais in damages for the dam burst, a

preliminary decision which prompted Vale and BHP to raise

provisions related to the case.

In late 2015, the collapse of the dam, near the town of

Mariana, Minas Gerais, at the Samarco iron ore mine, caused a

vast flow of mud and toxic mining waste that buried a nearby

village, killing 19 people. It also left hundreds homeless while

polluting the Doce River, a major waterway that flows through

neighboring Espirito Santo state.

According to a legal document filed on Monday, Minas Gerais

and Espirito Santo states have asked a court to order Vale and

BHP to pay a total 100 billion reais ($19.5 billion), along with

interest plus a late payment penalty.

The states argue that a larger payment amount is needed to

repair the affected areas, claiming the companies are able to

pay more based on their most recent three years of earnings,

according to the document.

Also on Tuesday, BHP said in a statement it remains willing

to collectively seek a solution to the disaster that would

guarantee fair and comprehensive reparation.

Vale declined to comment. Samarco did not immediately

respond to requests for comments.

Earlier this month, the Brazilian government and Espirito

Santo state rejected a proposal by Vale, BHP and Samarco that

offered to pay a total of 127 billion reais. Minas Gerais said

it wanted to keep negotiating.

An eventual agreement would conclude several ongoing

lawsuits over the incident.

($1 = 5.1289 reais)

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