BHP Billiton Agrees To USD211 Million Funding For Fundao Failure

LONDON (Alliance News) - BHP Billiton PLC said on Friday it has agreed to fund USD211 million ...

Alliance News 29 June, 2018 | 6:34AM
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LONDON (Alliance News) - BHP Billiton PLC said on Friday it has agreed to fund USD211 million in financial support for the Renova Foundation and Samarco Mineracao SA until the end of the year.

The Renova Foundation was set up to manage restoration and reconstruction programmes after Samarco's Fundao dam in Brazil failed in November 2015, flooding the surrounding area and causing multiple deaths.

Samarco is jointly owned by BHP Billiton Brasil Ltda and Brazil's Vale SA.

The miner said USD158 million of the sum will be used to fund the Renova Foundation, to undertake the remediation and compensation programs identified under the March 2016 agreement between Samarco, Vale, BHP Brasil, and the federal government of Brazil, the states of Minas Gerais and Espirito Santo.

This USD158 million will be offset against BHP's provision for the Samarco dam failure.

Meanwhile, a short-term facility of up to USD53 million will be made available to Samarco to carry out ongoing repair works, maintain facilities and support restart planning. Funds will be released to Samarco only as required, and subject to achievement of key milestones.

This comes after BHP earlier in the week said it has reached an agreement with all parties over how to proceed with claims related to the Fundao tailings dam disaster in November 2015.

BHP said on Tuesday the parties involved in the March 2016 agreement have agreed to file to dismiss the BRL20 billion civil claim as well as suspend for two years the BRL155 billion claim brought by Brazilian federal prosecutors.

They are to instead establish a new, two-year renegotiation period to settle the BRL155 billion claim, and the new framework will also see greater local community involvement in the decision making process.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
BHP Billiton PLC 1,760.20 GBX -2.00
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