Samarco Mineracao, the iron-ore venture owned by Vale and BHP Billiton, reached an agreement with Brazilian authorities to pay for damage caused by a tailings dam spill over the next 15 years.

The arrangement estimates 20 billion reais ($US5.1 billion) to guarantee reparation of social, economic and environmental damages, and more than 4.1 billion reais for compensation over the next 15 years, according to a statement released at a signing ceremony in Brasilia on Wednesday. Of that amount, 4.4 billion reais will be deposited in a foundation by 2018 for 38 programs.

Bloomberg