12:49 PM EDT, 04/29/2024 (MT Newswires) -- (Updates with Vale's statement in the fifth paragraph.)

BHP Group ( BHP ) said in a filing Monday that its unit BHP Billiton Brasil, Vale (VALE) and their joint venture Samarco Mineracao have submitted a nonbinding settlement proposal worth about $25.7 billion as compensation for the 2015 tailings dam disaster at their iron-ore facility.

The proposal includes $7.7 billion in remediation and compensation costs to date, $14.4 billion payable over more than a decade to federal and state governments and relevant municipalities, and $3.6 billion in obligations that will be completed by Samarco and the Renova Foundation, according to the filing.

"The negotiations between the parties are ongoing and no final agreement has been reached on the settlement amount or terms," BHP added.

The company said Samarco is the primary obligor responsible for complete payment, while Vale and BHP Brasil will each pitch in 50% of any remaining bill.

Vale told MT Newswires that "the financial value of the proposal, considering past and future obligations, totals 127 billion Brazilian reais." This includes, according to the company, 37 billion Brazilian reais in amounts already invested on remediation and compensation to date, a 72 billion Brazilian reais cash payment payable over a period of time to the federal government, the states of Minas Gerais and Espirito Santo and the municipalities, and 18 billion Brazilian reais in obligations to be performed.

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