BHP and Vale offer $39b to settle Brazil dam disaster claims

“Unfortunately, this offer is misleading in a number of ways,” said Pogust Goodhead’s chief executive and global managing partner Tom Goodhead.

“Firstly, it does not settle the proceedings brought by nearly 700,000 victims against BHP and Vale in London. Secondly, this offer is targeted at the companies’ obligations towards Brazilian authorities, rather than the redress and compensation that the victims deserve. Thirdly, while the headline number is $US25 billion, only half of that is newly promised money, and we understand this is to be paid out to the authorities over 20 years.”

“After nearly nine years the companies must now face their responsibilities towards the victims as well as those towards the Brazilian government,” Goodhead said.

Earlier this year, a Brazilian federal judge ruled the miners and their joint venture Samarco should pay $14.7 billion in damages.

BHP and Vale set up the Renova Foundation in 2016 in negotiation with the Brazil government.

Loading

The company said it was fully committed to supporting ongoing remediation and compensation in Brazil through the foundation which has so far spent about $US7.71 billion on reparation and compensation.

It said it has paid about $US3.51 billion in indemnities and emergency financial assistance directly to 430,000 people, with 85 per cent of the resettlement cases for the communities impacted by the dam failure complete.

The Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.