BHP exec takes charge of Samarco

A Brazilian judge has ordered that the assets held by mining giants Vale and Australian company BHP Billiton be frozen in the wake of a dam collapse that officials call the worst environmental disaster in the country’s history.

Federal Judge Marcelo Aguiar Machado disagreed in his 19-page judgment: “I understand to be correct the allegation that Vale and BHP, as controllers of Samarco, can be classified as indirect polluters and as such responsible for the environmental damage caused”.

The death toll from a burst dam at a mine in Brazil has risen to 17, with two people still missing, BHP Billiton confirmed today.

The companies must map out an extensive clean-up plan and work out how to stop mud from contaminating sources of mineral water.

In a statement issued in response, Vale, Brazil’s top exporter, said it “will appeal the court order which it considers baseless, and will reply to the legal motion within the timeframe stipulated by law”. Two people who were working on the dam remained unaccounted for.

BHP Billiton has appointed Flávio Bulcão as Country Director, Brazil, effective immediately.

BHP said Samarco continues to work with the government authorities in Brazil to relocate displaced people from temporary accommodation to rented housing, and to distribute living wage debit cards to the impacted.

All displaced people will be given the opportunity to relocate before Christmas Day, BHP said.

“All communities affected by the dam breach have access to drinking water, with Samarco having worked with municipal authorities to maintain potable water supplies”, it said.

Brazil’s government is suing BHP and Vale for “at least” 20 billion Brazilian reals (£3.3 billion, $4.9 billion) and, as part of the proceedings, a Brazilian court has made some preliminary demands of the pair.

“In 30 days, the companies should make an initial deposit of 2 million reais (about US$502,000) to carry out the full recovery plan”, the judge ruled, according to the state news agency European Central Bank. The consequences for the world’s largest mining company are likely to be less far-reaching than for Vale, however, as BHP does not have any assets in Brazil other than Samarco, whose operations have already been suspended due to the accident. A daily fine of 1.5m reais applies for non-compliance with this deadline.