MINING COMPANIES APPEAL BRAZILIAN COURT DECISION

07/11/2016

Mining companies BHP Billiton and Vale SA, both involved in the 2015 Samarco iron ore mine disaster, intend to appeal a decision from the Brazilian Superior Court of Justice that suspended their financial settlement agreement. Though Samarco, BHP, and Vale had agreed to staggered payments over 15 years to cover cleanup and repair costs, the court ruled that the payment schedule was "insufficient" after federal prosecutors appealed the decision. Because of this decision, Brazilian authorities can now continue with a public civil claim against the companies for an estimated cost of $6.23 billion in damages, an amount much higher than the costs predicted by the companies in their planned financial settlement. In addition, the court’s decision could potentially reignite a separate $44 billion lawsuit by federal prosecutors. For the full story, see http://uk.reuters.com/article/uk-bhp-billiton-samarco-claim-idUKKCN0ZH561