Vale’s R$167 Billion Mariana Disaster Settlement Nears Completion

Alexandre Silveira, Brazil’s Minister of Mines and Energy, shared details about the Mariana disaster compensation agreement. The settlement, worth R$167 billion ($33.4 billion), is expected to be finalized this month. Silveira discussed the agreement during a campaign event in Belo Horizonte.

The settlement involves Samarco, Vale, and BHP, the companies responsible for the Fundão dam collapse. Of the total amount, R$100 billion ($20 billion) represents new funds. This is a significant increase from the initial R$49 billion ($9.8 billion) proposed in December 2022.

President Lula recently met with 14 ministers to discuss the agreement’s implementation. A fund will be created with the National Bank for Economic and Social Development (BNDES) to manage the resources. Silveira emphasized the need for quick and efficient projects to benefit those affected.

The new agreement includes R$30 billion ($6 billion) for specific obligations, up from the original R$14 billion ($2.8 billion). Over 300,000 families will receive immediate compensation of R$30,000 ($6,000) each. Fishermen will get R$95,000 ($19,000) per person.

Vale’s R$167 Billion Mariana Disaster Settlement Nears Completion

Two major road projects are part of the settlement. These include the duplication of BR-356 from BR-040 to Mariana in Minas Gerais and BR-262 to Vitória in Espírito Santo. Silveira stated that these projects are already defined in the pre-closed terms.

The minister expressed hope for the agreement’s conclusion this month. He acknowledged that while it can’t undo the damage, it aims to minimize the impacts of the serious mining incident. Silveira also criticized the previous Brumadinho disaster settlement, claiming it didn’t properly address environmental concerns.

This comprehensive agreement marks a significant step in addressing the aftermath of the Mariana disaster. It demonstrates a commitment to compensating affected communities and improving infrastructure in the impacted regions.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.