BHP Group, Vale Agreed on Compensation Payment in U.K. for Brazil Dam Failure

By Najat Kantouar

BHP Group said Friday that it agreed on a compensation payment along with Vale in the U.K. over the failure of Brazil's Samarco dam in 2015.

Under the agreement both companies each agreed to pay 50% of any potential amounts due to the claimants in the English, the Netherlands and other proceedings in Brazil, without admitting liability.

In April, BHP's Brazilian subsidiary, mining peer Vale and the companies' joint venture Samarco proposed a nonbinding indicative settlement worth around $25.7 billion relating to the dam failure.

The Samarco tailings dam, used to hold water and discarded mineral waste from a nearby mine, failed in November 2015 and devastated communities situated below. The failure caused deaths, submerged homes, buried vehicles and overran communities with mud and water.

The dam was owned and operated by Samarco, a 50:50 joint venture between BHP Billiton Brasil, and Vale.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

July 12, 2024 08:13 ET (12:13 GMT)

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