Samarco Posts US$328.5 Million Loss on Mariana Reparation Costs
Brazil · Earnings
Key Facts
- —The loss Samarco reported a net loss of about US$328.5 million for the second quarter of 2026.
- —The cause reparation-linked financial charges and currency swings on real-denominated liabilities, not weak mining.
- —The revenue net revenue held at US$469.7 million, almost identical to US$469.9 million a year earlier.
- —The trend the loss shrank sharply from US$1.69 billion a year ago and US$1.12 billion in the prior quarter.
- —The backdrop a 2024 settlement worth about R$170 billion (roughly US$31.7 billion) for the 2015 Mariana dam disaster.
The mine is running steadily again — it is the decade-old disaster bill, not the business, that keeps the numbers red.
Samarco, the iron-ore venture jointly owned by Vale and BHP. Reported a net loss of about US$328.5 million for the second quarter of 2026.
The red ink came almost entirely from the cost of paying for a decade-old dam disaster, not from the mine itself. Sales and production, in fact, held steady.
A loss that is really a bill
The company lost about US$328.5 million between April and June 2026. That sounds alarming for a business that digs and sells iron ore.
But the mine is not the problem here. The loss is the ongoing price of the 2015 dam collapse that Samarco is still paying off.
Why Samarco lost money while mining more
Most of the loss came from financial charges tied to reparation obligations and from exchange-rate swings on liabilities held in Brazilian reais. In plain terms, the disaster debt sits on the books and moves the bottom line.
The actual mining business stayed healthy. Net revenue, in fact, reached US$469.7 million, virtually flat against US$469.9 million a year earlier.
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The disaster behind the numbers
In November 2015 the Fundão tailings dam near Mariana, in Minas Gerais, burst and killed 19 people. A wave of mining waste buried the village of Bento Rodrigues and fouled the Doce River for hundreds of kilometres.
It remains one of Brazil’s worst environmental disasters. So everything on Samarco’s income statement now flows from that day.
The R$170 billion bill
In October 2024 Samarco, Vale and BHP signed a settlement with Brazilian authorities worth about R$170 billion. Roughly US$31.7 billion at the time.
It is one of the largest environmental agreements the country has ever seen. About R$38 billion had already been spent by then.
The rest, meanwhile. Is split between roughly R$100 billion in cash payments to governments over 20 years and about R$32 billion in cleanup and resettlement work.
A loss that keeps shrinking
The latest figure is heavy, but the direction is encouraging. Samarco lost US$1.69 billion in the same quarter of 2025 and US$1.12 billion in the first quarter of 2026.
So the quarterly loss has fallen by roughly four-fifths in a year. As the currency settles and one-off charges fade, the gap between revenue and reported results is narrowing.
Iron ore is flowing again
Production told a steadier story. Samarco turned out about 3.9 million tonnes of pellets and fines in the quarter.
Up 4% from the previous three months and roughly level with a year earlier. Sales matched output at about 3.9 million tonnes.
The company says it has settled into a stable operating level after restarting its second production line.
Still a long way from full capacity
Even so, the plant is running at only about 60% of what it was built to handle, based on 2025 figures. The venture has approved roughly R$13.8 billion to modernise and expand its operations.
The goal is to reach full capacity around 2028 or 2029. Higher volumes would spread fixed costs and make the operation more profitable.
The debt and cleanup cap
Samarco spent years under a court-supervised reorganisation after the disaster, which stretched out its debts and eased its immediate cash strain. Its rating has since improved, though leverage stays high.
Crucially, its own spending on remediation is capped at about US$1 billion for 2024 through 2030. Any cost above that falls to the deep-pocketed parents, Vale and BHP.
What it means for the owners
For Vale and BHP, Samarco is both a producing asset and a lasting liability. The steadier revenue and shrinking losses suggest the mining side is finding its feet.
The disaster bill, however, will shadow the venture for two decades. Investors are learning to read Samarco as a legal story wrapped around a mine.
Frequently Asked Questions
Why did Samarco report a loss if revenue was stable?
The loss came from financial charges linked to its dam-disaster reparation obligations and from currency swings on real-denominated liabilities. Not from weak mining.
How big was the Q2 2026 loss?
About US$328.5 million for April through June 2026. That was far smaller than the US$1.69 billion loss a year earlier and the US$1.12 billion loss in the previous quarter.
What is the R$170 billion settlement?
It is a 2024 agreement, worth roughly US$31.7 billion, among Samarco, Vale. BHP and Brazilian authorities to repair the damage from the 2015 Mariana dam collapse over the coming decades.
Who owns Samarco?
Samarco is a joint venture split equally between Brazil’s Vale and Australia’s BHP. Both parents share responsibility for the reparation costs.
Connected Coverage
Sources: Reuters; BHP; IBRAM.
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