BHP Billiton steps up Brazil dam disaster funding
BHP will pay an extra $244m towards remediation and compensation following the deadly Samarco dam collapse.
BHP Billiton says an additional $US181 million ($244m) has been approved to fund remediation and compensation programs relating to its Samarco joint venture in response to last year’s tailings dam disaster in Brazil.
Samarco’s operations were put on hold in November 2015 after a dam collapse devastated communities and resulted in the loss of 19 lives.
The mining giant said the funds will come out of the $US1.2 billion provision already booked in its financial accounts.
A short-term facility of $US115m has also been announced by BHP and its joint venture partner Vale to support Samarco’s operations and stabilisation activities.
“Funds will be released to Samarco only as required and subject to the achievement of key milestones,” BHP (BHP) said.
“The short-term facility allows BHP Billiton Brasil to preserve the value of its investment as options for restart continue to be assessed.”
A restart at Samarco is currently expected next year, although no formal timeline has been set as it still needs to receive approval from the relevant local authorities.
BHP and Vale are facing civil cases over the disaster, while qualified homicide charges have also been laid by Brazilian prosecutors against 21 BHP, Vale and Samarco employees.
