PERTH (miningweekly.com) – Mining major BHP on Friday said that it would contribute a total of $211-million to the Renova Foundation and its joint venture with Brazilian major Vale, Samarco, until the end of December this year.
The miner said that $158-million of the funds would go towards the Renova Foundation to undertake the remediation and compensation programmes identified under the 2016 framework agreement between Samarco, Vale, BHP and the Brazilian government.
This funding will be offset against BHP”s provision for the Samarco dam failure.
A further short-term facility of up to $53-million will be made available to Samarco to carry out ongoing repair works, maintain the facilities and to support restart planning.
BHP told shareholders that the funds will be released to Samarco only as required, and will be subject to the achievements of key milestones.
BHP and Vale earlier this week reached an agreement with the Brazilian government to extinguish a 20-billion reais ($5.3-billion) lawsuit relating to the 2015 dam failure. The agreement allows the mining companies more time to settle a larger 155-billion reais ($41.5-billion) civil claim, brought by Brazil’s federal prosecutors in May 2016, seeking social, environmental and economic compensation for the country’s worst-ever environmental disaster.