Brazil Files Civil Suit Against Samarco, Vale, BHP Over Dam Disaster
01 December 2015 - 12:40PM
Dow Jones News
RIO DE JANEIRO--Brazil's government filed a civil lawsuit Monday
against mining company Samarco Mineraç ã o SA and its parents, Vale
SA and BHP Billiton Ltd., in response to a massive dam failure at a
Samarco iron-ore mine on Nov. 5.
In the lawsuit, which was announced Friday, public attorneys are
seeking 20.2 billion Brazilian reais ($5.2 billion) over 10 years
from the companies, including an immediate deposit of 2 billion
reais. Their objective is to finance compensation for the thousands
of people affected by the disaster and efforts to restore the Rio
Doce river basin, which was flooded with mud and mine waste.
The companies weren't immediately available for comment. Upon
learning of the government's plan to sue the companies, Vale said
on Saturday: "We are surprised by the path chosen by the federal
government and that of Espí rito Santo and Minas Gerais states,
given that Vale, BHP and Samarco have displayed an openness to
dialogue."
As a guarantee, government attorneys asked a federal judge to
set aside 50% of the net profit or 20% of the annual revenue of
Samarco--whichever is greater--for a special fund. If Samarco is
unable to foot the bill, they requested that Vale and BHP Billiton
be required to pay.
Samarco, a joint venture between Vale and BHP, reported gross
revenue of 7.6 billion reais in 2014.
As many as 13 people were killed and hundreds displaced as the
mud swallowed up entire villages below the dam.
Authorities quickly suspended Samarco's operating licenses in
the days following the accident, and analysts say it could be years
before the company regains those permits.
Write to Paul Kiernan at paul.kiernan@wsj.com
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(END) Dow Jones Newswires
November 30, 2015 20:25 ET (01:25 GMT)
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