BHP Billiton Ltd yesterday renewed its commitment to do all it can to help following the deadly collapse of a wastewater dam in Brazil, with the mining giant and partner Vale facing a huge lawsuit.
The Brazilian government announced on Friday plans to sue the two companies for US$5.2 billion in clean-up costs and damages after the Nov. 5 collapse of the dam at the Samarco iron ore mine.
BHP said in a statement it was aware of the development, but had so far received no formal notice.
The world’s largest miner added that “BHP Billiton confirms its commitment to supporting Samarco to rebuild the community and restore the environment affected by the breach of the dams.”
Brazilian Minister of the Environment Izabella Teixeira said a lawsuit would be filed demanding the companies and mine operator Samarco, which they co-own, create a fund of 20 billion Brazilian real (US$5.2 billion). The money would go to environmental recovery and compensation for victims.
On Friday, BHP and Vale announced their own fund for “the rescue and recuperation of the Rio Doce river system,” but did not give figures.
“The aim is to seek additional financial support from other private, public and non-government organizations. The initial value is still being defined,” BHP said.
The miner yesterday said in its statement that 13 people died and six remained missing from the flood of mud and wastewater triggered by the breaking dam at the mine near Mariana in southeastern Brazil. Earlier reports said 11 were missing.
The deluge swept down the River Doce to the Atlantic, sparking claims of major contamination, although the mining companies insist there is no serious pollution.
“Samarco reports that analysis by SGS Geosol, a company specializing in environmental geochemistry, has confirmed that the tailings are composed of materials that are not hazardous to human health, based on the hazard classification of the material under Brazilian standards,” BHP said.
However, it did acknowledge that “a large number of fish died due to reduced oxygen uptake,” with a full assessment ongoing.
Last week the UN blasted Brazil’s government, along with BHP and Vale, for a failure to respond to what it said was “the risk of exposure to toxic chemicals.”
Most of the village of Bento Rodrigues was flattened in the deluge, with hundreds of people affected.
BHP said it was continuing to move those displaced from temporary accommodation to rented housing with relocation expected to be completed by February.
The Anglo-Australian miner added that clean-up work was under way, focusing on access roads, housing and bridge repairs.
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