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Mining firm BHP offers $25.7bn settlement for Brazil dam disaster | Mining firm BHP offers $25.7bn settlement for Brazil dam disaster |
(32 minutes later) | |
Australian company and its partner Vale unleashed largest spill of mining waste in history | Australian company and its partner Vale unleashed largest spill of mining waste in history |
The mining company BHP has said it hopes to secure a $25.7bn (£20bn) settlement over the 2015 Samarco disaster, when the collapse of a dam left at least 19 people dead, 700 homeless and spread unprecedented levels of pollutants across the rivers and landscape of Brazil. | The mining company BHP has said it hopes to secure a $25.7bn (£20bn) settlement over the 2015 Samarco disaster, when the collapse of a dam left at least 19 people dead, 700 homeless and spread unprecedented levels of pollutants across the rivers and landscape of Brazil. |
BHP said it had offered the settlement to the Brazilian authorities in partnership with fellow miner Vale, its 50:50 joint venture partner in a local subsidiary, Samarco. | BHP said it had offered the settlement to the Brazilian authorities in partnership with fellow miner Vale, its 50:50 joint venture partner in a local subsidiary, Samarco. |
The Fundão dam, owned by Samarco, collapsed on 5 November 2015, releasing a deluge of mining waste near Mariana, in the Minas Gerais region of Brazil. | The Fundão dam, owned by Samarco, collapsed on 5 November 2015, releasing a deluge of mining waste near Mariana, in the Minas Gerais region of Brazil. |
The accident also began a long series of legal claims against BHP, the Australian mining company which had its primary stock market listing in London at the time of the disaster. | The accident also began a long series of legal claims against BHP, the Australian mining company which had its primary stock market listing in London at the time of the disaster. |
The world’s largest mining company said that it and Vale had put forward a proposal worth a total of 127bn Brazilian reals (£19.9bn), although some of that sum has already been paid. | The world’s largest mining company said that it and Vale had put forward a proposal worth a total of 127bn Brazilian reals (£19.9bn), although some of that sum has already been paid. |
Under the terms of the proposal, the two companies would agree to pay $14.4bn over the course of “well in excess” of a decade, to Brazilian national, regional and municipal governments. | Under the terms of the proposal, the two companies would agree to pay $14.4bn over the course of “well in excess” of a decade, to Brazilian national, regional and municipal governments. |
They would also fund a further $3.6bn in compensation and clean-up efforts via the Renova Foundation, which was set up in the wake of the disaster. | They would also fund a further $3.6bn in compensation and clean-up efforts via the Renova Foundation, which was set up in the wake of the disaster. |
The remainder of the settlement, $7.7bn, has already been spent via the foundation, including $3.5bn that has gone directly to about 430,000 affected people. | The remainder of the settlement, $7.7bn, has already been spent via the foundation, including $3.5bn that has gone directly to about 430,000 affected people. |
The proposal by BHP and Vale would wrap together existing agreements with Brazilian authorities with outstanding claims by various government bodies in a single settlement. | The proposal by BHP and Vale would wrap together existing agreements with Brazilian authorities with outstanding claims by various government bodies in a single settlement. |
BHP, the world’s largest mining company, moved its primary stock market listing to Australia in 2022. | BHP, the world’s largest mining company, moved its primary stock market listing to Australia in 2022. |
But at the time of the accident its main listing was in London, where its annual meetings were visited by protestors. | |
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They were demanding greater compensation for a disaster that unleashed the largest spill of tailings – mining waste – in history. | They were demanding greater compensation for a disaster that unleashed the largest spill of tailings – mining waste – in history. |
BHP announced its settlement proposal to investors after speculation in the Brazilian press. | BHP announced its settlement proposal to investors after speculation in the Brazilian press. |
It said: “The negotiations between the parties are ongoing and no final agreement has been reached on the settlement amount or terms.” | It said: “The negotiations between the parties are ongoing and no final agreement has been reached on the settlement amount or terms.” |
Last week, the London-listed mining company Anglo American rejected a “highly unattractive” £31bn takeover approach from BHP. | Last week, the London-listed mining company Anglo American rejected a “highly unattractive” £31bn takeover approach from BHP. |
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