BHP and Vale’s settlement of $2.3 billion was overturned by the court and it was told to pay $6.23 billion. It has now decided to fight the case, rather than settle.
BHP Billiton has disclosed that it would appeal the Brazilian court’s decision to reinstate a $6 billion public civil claim over Samarco’s iron ore mine disaster which occurred last year.
Earlier in March last year, Vale and BHP had agreed on a $2.3 billion settlement. However that didn’t materialize since Brazil’s Superior Court took up an appeal from the Federal Prosecutor which nullified the interim order and reinstated the $6.23 billion (20 billion real) civil claim for cleanup costs and damages against BHP and Vale.
“BHP Billiton Brasil intends to appeal the decision of the Superior Court of Justice,” said BHP in a statement.
The company has additionally disclosed that it will continue to support the long term recovery of the affected communities and the bear the environmental costs related to the failure of the dam.
Last year, on November 5, a burst tailings dam at the mine gave way and in the result a wall of mud was released which killed 19 people and left hundreds homeless. It also polluted a major river. Brazil’s government termed the incident as the country’s worst ever environmental disaster.
Since then the mine has remained in-operational. Brazil’s environmental authorities have said they will allow the opening of the mine only if the company can prove that mud will no longer leak from it and flow into the surrounding areas. Running the mine safely is of prime importance.
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