BHP Billiton, Vale Agree to Settlement With Brazil Over 2015 Tailings Dam Collapse -- Update
25 Junio 2018 - 06:28PM
Noticias Dow Jones
By Jeffrey T. Lewis
SAO PAULO--Vale SA and BHP Billiton Ltd., the owners of
Brazilian mining company Samarco Mineracao SA, said Monday they
agreed with Brazilian authorities to suspend for two years a 155
billion real ($41 billion) civil claim over the catastrophic 2015
collapse of a tailings dam while talks continue, disappointing
investors who had been hoping for a final settlement of the
suit.
The companies, federal prosecutors and the governments of the
states of Minas Gerais and Espirito Santo will also ask to dismiss
a separate civil claim, for 20 billion reais. The entire agreement
needs to be approved by a federal court and by the federal
government, BHP Billiton and Vale said in notes.
The dam, owned by Samarco and located in the Brazilian state of
Minas Gerais, collapsed in November 2015, resulting in the deaths
of 19 people and polluting more than 400 miles of waterways.
Samarco, a joint venture half owned by Vale and half by BHP
Billiton, shut down operations following the accident.
Samarco produced high-quality iron-ore pellets before it closed,
and steelmakers are now paying miners a big premium for that type
of ore. Samarco accounted for roughly one-fifth of the global
iron-ore pellet market before its suspension, and financial markets
are keenly interested in knowing when it will resume
operations.
BHP Billiton declined to say when Samarco might restart.
Investors have also sought clarity on whether there will be
changes to the future ownership of the operation, after several
media reports over the past year said the companies were discussing
whether Vale would take control of Samarco. BHP isn't currently in
talks to sell its stake, a person familiar with the matter said on
Monday.
The two civil suits, for 20 billion reais and for 155 billion
reais, generated uncertainty over the final amount the companies
will have to pay as deadlines for resolutions were postponed. With
the smaller suit expected to be dismissed and the other talks
extended, the agreement is a step in the right direction, but it
doesn't clear up some key questions, some analysts said.
"Everyone was hoping for a final number and a little more
visibility on the restart" of Samarco operations, said Jeremy
Sussman, an analyst at Clarkson Capital Markets in New York.
The agreement brings more stakeholders into the negotiations,
which will make the talks slightly more complex but "creates a more
favorable environment for ongoing work and future negotiations,"
said Danny Malchuk, BHP Billiton's President of Operations,
Minerals America, during a conference call.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
June 25, 2018 19:13 ET (23:13 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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