PERTH (miningweekly.com) – Mining giant BHP Billiton and its joint venture (JV) partner Vale have set aside $260-million as an emergency fund to assist the community members affected by the recent spill at the Samarco iron-ore mine, in Brazil.

BHP CEO Andrew Mackenzie said that a preliminary agreement with Brazilian prosecutors in Minas Gerais would guarantee that the funding would be used for a range of emergency measures related to prevention, mitigation, remediation, and compensation for environmental and social effects of the incident.

The Samarco JV would manage the emergency fund in conjunction with the Public Ministry, which would also select an independent auditor to audit the fund’s expenses.

A significant amount of tailings were released after one of three tailings dams at Samarco failed, flooding the community of Bento Rodrigues and impacting on other communities downstream. A number of people were killed in the incident and several more were still reported missing.

Operations at Samarco were immediately suspended following the incident and the miners’ operating licence had been suspended.

Mackenzie said on Tuesday that more than 600 people lost their homes during the accident, and had been placed in hotel or bed and breakfast accommodation.

Samarco was consulting with each family to understand whether they would prefer to stay in hotels or move into rented housing. Mackenzie added that more than 300 potential rental properties have been evaluated, and these would be validated by the community before they moved.

Meanwhile, Mackenzie noted that the Samarco JV had also signed a commitment with authorities in Espirito Santo, which covered measures to prevent and mitigate socio-environmental impacts in the state.

The measures included ensuring a supply of water in the affected areas, analysis of water quality in the Rio Doce basin, and the recovery of fauna in the area.