Brazil: Prosecutors file $44 billion civil suit against Vale, BHP Billiton, Samarco & govt. over dam disaster
“Brazil Seeks $44 Billion in Suit Over Spill at BHP-Vale Dam”, 3 May 2016
Brazilian prosecutors filed a 155 billion reais ($44 billion) civil suit against Vale..., BHP Billiton...and their iron-ore venture over...[the]...dam rupture that killed as many as 19 people and caused severe environmental damage. The prosecuting task force is demanding the two companies and Samarco Mineracao...provide initial payment of 7.8 billion reais within 30 days...The civil suit...challenges a previous agreement the companies signed with federal and state governments, probably will result in a much lower settlement, according to Bank of America Corp. analysts. Samarco had been making progress at overcoming what authorities describe as Brazil’s biggest environmental disaster before the lawsuit was filed...“This action...includes not just the three companies but the federal government, both state governments and also various agencies.”...[prosecutor Eduardo Aguiar said]...Vale’s...bonds due 2022 slumped 3.9 cents in the past two days, to 87.4 cents on the dollar, while BHP notes due 2023 declined 0.9 cents to 105.4 cents. Samarco...bonds tumbled about 10 cents on the dollar...The...suit includes more than 10,000 pages of technical reports and more than 200 claims related to ecological, economic and social damages...Last week, a Minas Gerais state environmental prosecutor filed a petition to block restarting Samarco until the mine can prove that the failed tailings dam is no longer polluting waterways. Samarco said leakage is contained and that their position is substantiated by studies conducted by Brazil’s environmental agency...