Brazil to sue BHP, Vale for $5 bln in damages for dam burst (updated)

Valecha Engineering

29/11/2015 21:23

(Repeats story published late Friday; no changes to text) 
    BRASILIA, Nov 27 (Reuters) - Brazil's federal and state 
governments plan to sue the owners of the Samarco iron ore miner 
for 20 billion reais ($5.24 billion)in damages caused by the 
burst of a tailings dam, Environment Minister Izabella Teixeira 
told reporters on Friday. 
    Samarco is a joint venture between the world's largest 
mining company, BHP Billiton Ltd  BHP.AX   BHP.N   BLT.L , and 
the biggest iron ore miner, Vale SA  VALE5.SA   VALE.N . 
    The dam burst earlier this month unleashed 60 million cubic 
meters of mud and mine waste that devastated a village, killed 
at least 13 people and polluted a major river valley. 
    Teixeira said the suit will be filed on Monday. The proceeds 
will be put in a fund and used for environmental cleanup in the 
Rio Doce valley over 10 years, Attorney General Luís Inácio 
Adams said. 
    Samarco has already been fined 250 million reais by Brazil's 
environmental agency, Ibama, for the disaster, which covered the 
flood plain in mud for 80 kilometers as well as polluting the 
river. Fish died and drinking water supplies for a quarter of a 
million people had to be closed off. 
    Ibama is planning additional fines against Samarco on top of 
the 20 billion reais in damages and clean-up charges the 
government is seeking, Adams said, but he did not specify an 
amount. 
    The dense orange sediment in the river reached the ocean on 
the weekend, hurting local tourist businesses. 
    The United Nations' human rights agency said on Wednesday 
that the mud from the dam burst was toxic, contradicting claims 
by Samarco and mine co-owner BHP Billiton that the water and 
mineral waste posed no risk to human health.  urn:newsml:reuters.com:*:nL1N13K2JG   
    The minister announced the lawsuit after the close of the 
Sao Paulo stock market. The share price of co-owner Vale fell 
5.78 percent on Friday. 
    Vale and BHP announced earlier on Friday that they would 
create a fund with Samarco to help in the clean-up of the Rio 
Doce and its tributaries affected by the disaster. They did not 
detail the size of the recovery fund. 
    ($1 = 3.8181 Brazilian reais) 
 
 (Reporting by Lisandra Paraguassu; Editing by Chris Reese, Bill 
Trott and Leslie Adler) 
 ((anthony.boadle@thomsonreuters.com; +55-61-3426-7018; Reuters 
Messaging: anthony.boadle.thomsonreuters.com@reuters.net;)) 
 
Keywords: BRAZIL DAMBURST/DAMAGES