Brazil confirms potential $18bn settlement with miners involved in deadly dam disaster By Reuters

By Marta Nogueira

RIO DE JANEIRO (Reuters) – Brazil’s government confirmed on Monday it was in talks over a potential $18 billion payment from a trio of miners involved in a deadly 2015 dam collapse, saying the deal could involve and additional repair work by the companies themselves.

Earlier this month, Reuters reported that Brazilian mining giant Vale and Australia’s BHP, along with their joint venture Samarco, could soon reach a deal to pay about 100 billion reais ($18.2 billion) in additional funds for repairs pending final terms of the agreement. in October.

Energy and Mines Minister Alexandre Silveira confirmed the story in an interview on Monday with local broadcaster Itatiaia, based in Minas Gerais state, where the toxic spill occurred.

Beyond the repairs under discussion, he said the talks also cover about 30 billion reais in remediation that the firms will implement themselves, such as removing toxic mining waste from a local river.

The collapse of the dam at a Samarco iron ore mine near the town of Mariana nine years ago triggered a flood of toxic tailings that killed 19 people, left hundreds homeless, flooded forests and polluted the length of the Doce River .

Miners have already paid about 37 billion reais for remediation and compensation for the collapse of the tailings dam, Silveira said.

An earlier proposal by the miners, which was not fully accepted by officials, had set out a payment of 82 billion reais to the authorities in new resources plus another 21 billion reais for repairs the miners will implement.

Vale did not specify the value of a potential deal in a response to a request for comment on Monday, but reiterated that it expects to reach an agreement in October.

Meanwhile, BHP and Samarco confirmed talks were ongoing in separate statements, adding they believed an agreement could be reached soon.

($1 = 5.5038 reais)