https://www.engineeringnews.co.za
Consulting|Iron Ore|Environmental
Consulting|Iron Ore|Environmental
consulting-company|iron-ore|environmental

Brazil prosecutors target final Samarco dam settlement this year

23rd July 2021

By: Bloomberg

  

Font size: - +

A final settlement between Brazilian authorities and the Samarco iron-ore venture can be reached this year, bringing legal certainty to owners Vale and BHP six years after a devastating tailings dam collapse.

That’s according to federal prosecutor Carlos Bruno Ferreira da Silva, who said in an interview that the final reparation value is yet to be defined and will be based on independent technical studies.

Silva, who is leading talks on behalf of prosecutors, pointed to a document signed by the parties that estimates talks to last about four months from June 22, the last four weeks of which would be focused on a final draft. Authorities and company officials have been meeting weekly.

A settlement would replace a giant lawsuit, removing a considerable legal overhang for Samarco and its shareholders after the 2015 collapse spewed millions of tons of sludge into communities and waterways, killing 19 people. That public-civil suit is suspended during the talks.

Still, there’s a lot at stake in the final phase of negotiations. In 2016, prosecutors issued a preliminary reparation calculation of 155 billion reais ($30 billion). Earlier this week, Reuters quoted Minas Gerais Governor Romeu Zema as saying it could reach 100 billion reais over five years. Vale’s recent 37.7 billion-real settlement for a seperate dam disaster at Brumadinho offers another point of reference -- it came in at two-thirds of what was initially sought by courts.

Private consulting firms are carrying out the socio-environmental diagnosis to measure the damage and what the companies have already done.

“This value can be higher or lower, depending on what the studies show,” said Silva.

For now, Silva says authorities have come up with detailed proposals to address individual indemnities. The Brazilian National Council of Justice mediating the negotiation is expected to convene public hearings in August and September to hear from the impacted population.

Edited by Bloomberg

Comments

Showroom

SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 
Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.099 0.155s - 160pq - 2rq
Subscribe Now