Vale SA (VALE), BHP Billiton (BHP) to Face Brazilian Government Multibillion

The dam burst earlier this month unleashed 60 million cubic meters of mud and mine waste that devastated a village, killed at least 13 people and polluted a major river valley.

Samarco continues to work to relocate displaced people, says BHP.

BHP Billiton said it has not received formal notice of the action at this stage.

Relocation will not be completed until February next year.

“The action will propose to the court that any value paid by the miners will not be paid to the coffers of the federal government or the states involved in the disaster but to a fund that will be used to finance exclusively actions to fix the damages”, the AGU said.

“BHP Billiton confirms its commitment to supporting Samarco to rebuild the community and restore the environment affected by the breach of the dams”, BHP said.

Samarco and local authorities are also continuing to assess water quality in the Rio Doce, it said, adding that the plume of so-called tailings had reached the Atlantic Ocean and was dispersing.

Last week, BHP and Vale said they would set up a non-profit fund to help authorities clean up the area and affected rivers.

However, Reuters – citing an interview with Vania Somavilla, sustainability chief at Vale, reports that toxic materials such as arsenic were found in the water of the Rio Doce river days after the dam burst.

Meanwhile, Samarco said tests on the sediments carried out by the Brazilian Geological Service in the Rio Doce river system in mid-November do not significantly differ from the results from 2010.

The statement contradicts claims by Samarco, the mine operator at the site of the rupture, and Samarco’s co-owner, BHP Billiton (BHP.AX)(BLT.L), that the water and mineral waste contained by the dam are not toxic.

Additional tests by another third party had also confirmed that “the tailings are composed of materials that are not hazardous to human health”, BHP said.

It did acknowledge that “a large number of fish died due to reduced oxygen uptake” with a full assessment ongoing.

Rescue workers search for victims who were covered with mud after a dam, owned by Vale SA and BHP Billiton Ltd, burst in Mariana, Brazil, November 8, 2015. The members of the sub-committee are John Schubert (as Chairman), Jac Nasser, Lindsay Maxsted and Malcolm Brinded.

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