BHP reaches $30 bln settlement for reparation of Brazil dam failure

(Reuters) – Miner BHP Group said on Friday it has reached a R$170 billion ($29.93 billion) final settlement with Public Authorities in Brazil for reparation of Samarco’s Fundão dam failure.

A federal judge in Brazil had ruled in February that BHP and Vale and their joint venture, Samarco, must pay up to 47.6 billion reais in damages for the 2015 dam collapse, in a decision still subject to appeal.

The collapse in the southeastern city of Mariana caused a giant mudslide that killed 19 people and severely polluted the Rio Doce river, compromising the waterway to its outlet in the Atlantic Ocean.

“BHP Brasil’s expected outflows under the Agreement align with BHP’s FY2024 Samarco dam failure provision of US$6.5 billion and no update is required to the existing provision at this time,” the mining company said in a statement.