Samarco fund approves $100m infrastructure investment

24th June 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Diversified giant BHP has reported that the Renova Foundation had approved a package of over $100-million to fund works in the health and infrastructure sectors in municipalities of the Doce River basin, in Brazil.

The miner said that the government projects were selected by the states for their collective and long-term impact, while being aligned with Renova’s 42 remediation and compensation programmes.

In line with a focus on the promotion of economic diversification in the affected municipalities, 153 km of roads in Minas Gerais and Espírito Santo will be restored to stimulate tourism, facilitate the movement of people and flow of goods.

In Minas Gerais, $25-million will be transferred, of which $2-million will be used to restore the road for access to the Doce River State Park, an important tourist destination in the region. Another $23-million will be allocated to the road that connects the Doce River Valley to the region of Zona da Mata.

In Espírito Santo, $65-million will be invested to restore road stretches at the mouth of the Doce river, to Vila do Riacho, Regência and Povoação districts.

BHP noted that paving access to those tourist destinations is an old demand in the region.

In addition, works will be resumed at the new Regional Hospital of Governador Valadares to meet the demands of the 86 municipalities and about 1.5-million inhabitants in the eastern region of Minas Gerais.

The state government will receive $13-million to proceed with the second stage of the works and acquisition of equipment for the 256-bed hospital, which will also have nine operating rooms.

An additional $2-million will be allocated to the implementation of an Industrial District in the municipality of Rio Doce, with an estimated area of 5 500 m2. The objective is to offset the impacts of the interruption of Risoleta Neves hydroelectric plant operation with the attraction of new companies. The action will also benefit the neighbouring towns of Ponte Nova, Dom Silverio, Barra Longa, Santa Cruz do Escalvado and Sem Peixe.

The Renova Foundation was established between BHP and its joint venture partner Vale in March 2016 following the 2015 collapse of a tailings dam which claimed the lives of 19 people and displaced numerous others.

Edited by Creamer Media Reporter

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