Mining companies BHP and Vale have reached an agreement with Brazilian public authorities on a 5.3-billion-U.S. dollar settlement on Tuesday as compensation for the November 2015 dam collapse that killed 19 people.
"Under this agreement, the companies agreed to establish a fund for clean-up costs and remediation and for compensation of impacts relating to the Fundao tailings dam failure," BHP said in a statement.
In what was the country's worst ever environmental disaster, a series of design and drainage faults caused the Samarco Mine dam to collapse.
As a result, a massive wave of waste material devastated a large portion of the Brazilian countryside, destroying villages and leaving hundreds homeless.
Making matters worse, the environmental impact of waste stretched 600 kilometers downriver, eventually finding its way to the Atlantic Ocean.
Also facing a 41.5-billion-U.S. dollar civil suit for damages caused by the incident, the agreement means that process will be on hold for two years.
"During the two year period, the parties will work together to design a single process for the renegotiation of the (remediation and compensation) programs and progress settlement of the 41.5 billion U.S. dollar civil claim," the statement said.
"Under this agreement, the companies agreed to establish a fund for clean-up costs and remediation and for compensation of impacts relating to the Fundao tailings dam failure," BHP said in a statement.
In what was the country's worst ever environmental disaster, a series of design and drainage faults caused the Samarco Mine dam to collapse.
As a result, a massive wave of waste material devastated a large portion of the Brazilian countryside, destroying villages and leaving hundreds homeless.
Making matters worse, the environmental impact of waste stretched 600 kilometers downriver, eventually finding its way to the Atlantic Ocean.
Also facing a 41.5-billion-U.S. dollar civil suit for damages caused by the incident, the agreement means that process will be on hold for two years.
"During the two year period, the parties will work together to design a single process for the renegotiation of the (remediation and compensation) programs and progress settlement of the 41.5 billion U.S. dollar civil claim," the statement said.
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