Brazil court suspends lawsuit over Samarco mine disaster - Vale (updated)

Valecha Engineering

17/03/2017 24:35

(Adds details of court rulings, Vale comment, background) 
    RIO DE JANEIRO, March 16 (Reuters) - Brazilian iron ore 
miner Vale SA  VALE5.SA  said on Thursday that a federal court 
in Minas Gerais has suspended a case brought by prosecutors 
seeking 155 billion reais ($49.7 billion) in damages for the 
2015 Samarco mine disaster. 
    Vale said in a securities filing the court suspended other 
lawsuits to facilitate negotiation of a final deal on damages 
resulting from the collapse of a tailings dam at the mine - a 
joint venture between Vale and the world's largest mining 
company, BHP Billiton Ltd  BHP.AX  BHP.N  BLT.L . 
    Vale said the court's decisions were aimed at unifying the 
lawsuits to avoid contradictions and help the parts reach a 
settlement. 
    "This is an important decision that recognizes the 
complexity of the case and the importance of a solution reached 
by consensus as the effective way of adopting the necessary step 
to remediate all the impacts of the dam burst," Vale said. 
    The government, which brought the lawsuit, was not 
immediately available for comment after business hours but in 
the past has indicated its main concern was reaching a 
settlement and safely restarting the mine. 
    The collapse killed 19 people and caused Brazil's worst ever 
environmental disaster when mud and waste destroyed a village 
and polluted the Rio Doce in two states. 
    Vale said the court approved the contracting within 60 days 
of companies to diagnose the environmental and social situation 
and evaluate the recovery programs agreed to in March 2016. 
    Vale CEO Murilo Ferreira recently said he expected Samarco 
to resume operations in the third quarter of this year. The 
resumption is considered vital for Samarco to meet its financial 
and reparation commitments. 
    BHP, Vale and Samarco agreed in January with Brazilian 
prosecutors on a June 30 deadline to settle billions of dollars 
in compensation claims stemming from the disaster. 
    The aim is to consolidate and settle separate claims, the 
biggest of which is the civil claim brought by federal 
prosecutors last year and suspended by the court on Thursday. 
 ($1 = 3.1180 reais) 
 
 (Reporting by Anthony Boadle; Editing by Daniel Flynn and Lisa 
Shumaker) 
 ((Twitter @anthonyboadle Email anthony.boadle@tr.com; +55 61 
98204-1110; Reuters Messaging: 
anthony.boadle.thomsonreuters.com@reuters.net)) 
 
Keywords: VALE SA SAMARCO/