The Brazilian iron ore and pellets producer, Samarco, said in a statement that the company and its controlling shareholders Vale and BHP Brasil are in final negotiations with Federal, Minas Gerais, and Espirito Santo states authorities about the indemnifications to be paid as repair for the damages caused by the collapse of Samarco’s Fundão rejects dam in 2015.
The agreement, now in its final stages, stipulates a payment by Samarco and its shareholders of a total amount of BRL 170 billion ($30 billion).
From this total, BRL 38 billion have been paid until September 2024, while BRL 132 billion will be paid as follows:
-BRL 100 billion will be paid, along the next 20 years, to the Federal, Minas Gerais, and Espírito Santo states, and their municipalities, for the financial support of public policies coordinated by the authorities.
-BRL 32 billion refer to procedures developed by Samarco, to repair and indemnify the damages in the city of Mariana, where the dam was located, including environmental damages in the city and along the Rio Doce basin, in what is considered the largest environmental disaster in the Brazilian history.
According to Samarco, no final deal was reached so far from the ongoing negotiations, which still depends on the approval of the final terms and the signing by the parties.