Brazilian Judge Slams Mining Giants Vale and BHP With $9.67B Charges Over Dam Collapse: Report

Mining Giants Vale SA VALE and BHP Group Ltd BHP and their joint venture Samarco had been reportedly slammed with charges related to the 2015 dam collapse by a Brazilian federal judge.

The companies were ordered to pay 47.6 billion reais ($9.67 billion) for the same, said Reuters.

The report noted that a dam collapse in the southeastern city of Mariana resulted in the killing of 19 people and severely polluted the Rio Doce River, compromising the waterway to its outlet in the Atlantic Ocean.

In the decision, Judge Vinicius Cobucci wrote that the amount was fixed taking into account the value of expenses already acknowledged by the companies in repair and compensation actions. 

However, it is not clear how much of the total amount Vale and BHP individually owe.

The judge wrote in the legal document that the money would be used for projects and initiatives for the area affected by the dam collapse.

In a filing filed yesterday, Vale clarified that it has not been notified of the court decision and reinforced its commitment to support the reparation for damages caused by the dam collapse.

Also, the company said it is maintaining contributions to the Renova Foundation for the same, and R$34.7 billion has been earmarked for Renova’s reparation and compensation actions.

Also Read: Mining Giant BHP Faces Industrial Action By Pilbara Train Drivers – What’s Going On?

Price Action: VALE shares are down 0.22% at $13.82, and BHP is declining 0.65% at $61.30 premarket on the last check Friday.