Brasília—Samarco Mineração SA and its two shareholders, BHP Billiton Ltd. and Vale SA, have reached an agreement with Brazil’s Federal Attorney General, the states of Espírito Santo and Minas Gerais, and certain other Brazilian authorities to pay clean-up costs and damages for the devastating dam spill in November (GM Nov. 23, 2015). According to estimates by the Brazilian government, the total amount will reach about R$20 billion ($5.1 billion). However, in separate statements by BHP and Vale outlining the obligations under the deal, the total came close to R$12 billion. The difference is said to be due to varying estimates of future amounts, according to local media quoting government sources. Some R$4.4 billion is payable through to 2018, less any amounts already paid by the iron-ore miner. The agreement is for 15 years, renewable for periods of one year successively until all obligations are fulfilled. In the event Samarco is unable to pay, BHP and Vale would be responsible for covering the costs. The deal, reached on March 2, does not cover other public or private civil claims or criminal charges relating to the dam failure against the three companies.
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