Samarco, a prominent Brazilian iron ore and pellets producer, is currently in the final stages of negotiations concerning a massive indemnification deal related to the catastrophic collapse of its Fundão rejects dam in 2015. This incident, which is recognized as one of the largest environmental disasters in Brazil's history, resulted in significant damages to the surrounding communities and ecosystems. Samarco's controlling shareholders, Vale and BHP Brasil, are also involved in these negotiations with the Federal Government and the states of Minas Gerais and Espírito Santo.
The proposed agreement entails a total payment of BRL 170 billion, approximately $30 billion, to be disbursed over several years. As of September 2024, Samarco has already paid BRL 38 billion, leaving BRL 132 billion remaining to be paid. This payment structure aims to ensure that funds are available for various public policies and reparations related to the disaster.
Out of the total remaining amount, BRL 100 billion is earmarked for distribution over the next 20 years to the Federal Government, Minas Gerais, Espírito Santo, and their municipalities. This financial support is intended to bolster public policies that are coordinated by the respective authorities to address the aftermath of the disaster and assist in the recovery of affected communities.
The remaining BRL 32 billion is designated for specific reparative actions undertaken by Samarco to mitigate the damages in the city of Mariana, where the dam collapse occurred. These funds will be utilized to address both environmental damages and the socio-economic impacts suffered by the residents in the region, particularly along the Rio Doce basin. The Rio Doce, which was severely impacted by the dam's failure, has been a focal point for recovery efforts.
Despite the advanced stage of negotiations, Samarco has clarified that a final agreement has yet to be reached. The deal is contingent upon the approval of the terms and the formal signing by all involved parties. This ongoing dialogue reflects the complexity of resolving such a significant disaster, emphasizing the need for comprehensive measures to repair the extensive damage caused.
