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BIL 201603030004A
Samarco – Agreement reached with Brazilian Authorities
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release Time IMMEDIATE
Date 2 March 2016
Release Number 7/16
SAMARCO – AGREEMENT REACHED WITH BRAZILIAN AUTHORITIES
Samarco Mineracao S.A (Samarco) and its two shareholders, Vale S.A (Vale) and
BHP Billiton Brasil LTDA (BHPB Brasil), have entered into an agreement with the
Federal Attorney General of Brazil, the States of Espirito Santo and Minas Gerais
and certain other public authorities (Brazilian Authorities) for the restoration of the
environment and communities affected by the Samarco dam failure on 5 November
2015.
The Agreement provides a long-term remedial and compensation framework for
responding to the impact of the Samarco tragedy.
Samarco, Vale and BHP Billiton Brasil will establish a Foundation that will develop
and execute environmental and socio-economic programs to remediate and provide
compensation for damage caused by the Samarco dam failure.
There are two broad types of programs included in the Agreement:
- Reparatory Programs to restore the environment, local communities and the
social condition of the affected areas; and
- Compensatory Programs to provide compensation where remediation is not
possible, and to provide compensation on a goodwill basis for certain special
projects which go beyond strict make-good and compensation (for example,
improvements to sewage systems and landfill management in the river basin).
The Foundation will be governed by a seven member Board, with Samarco, BHP
Billiton Brasil, and Vale each appointing two members and the Brazilian Authorities
appointing one member. The Foundation will be assisted in its work by an advisory
panel that will include technical experts, regulators and community representatives.
The Foundation will submit remediation and compensation programs for approval to
a Council consisting of representatives of the Brazilian Authorities. The Foundation’s
activities will be subject to independent external audit.
The term of the Agreement is 15 years, renewable for periods of one year
successively until all obligations under the Agreement have been performed.
Samarco will fund the Foundation with contributions as follows (calendar years):
- BRL2 billion (approximately US$500 million) in 2016, less the amount of funds
already spent on, or allocated to, remediation and compensation activity 1,
- BRL1.2 billion (approximately US$300 million) in 2017, and
- BRL1.2 billion (approximately US$300 million) in 2018.
The amount of annual contributions for each of the years 2019, 2020 and 2021 will
vary between a minimum of BRL800 million (approximately US$200 million) and a
maximum of BRL1.6 billion (approximately US$400 million), depending on the
remediation and compensation projects which are to be undertaken in the particular
year.
To the extent Samarco does not meet its funding obligations, each of Vale and BHP
Billiton Brasil is liable in proportion to its 50 per cent shareholding in Samarco.
Samarco will continue to conduct and fund the humanitarian and environmental
recovery and remediation work until the Foundation is operational, which is likely to
be in the next few months.
The Agreement is subject to Court approval. If approved, the Agreement will settle
the civil public claim commenced on 30 November 2015 by the Brazilian Authorities
against Samarco, Vale and BHP Billiton Brasil which sought the establishment of a
fund of up to BRL20 billion in aggregate for clean-up costs and damages relating to
the dam failure.
BHP Billiton Chief Executive Officer, Andrew Mackenzie said: “This Agreement is an
important step forward in supporting the long-term recovery of the communities and
environment affected by the Samarco dam failure. It provides a platform for the
parties to work together to support the remediation of affected areas.
“This agreement demonstrates our commitment to repairing the damage caused and
to contributing to a lasting improvement in the Rio Doce.”
Further information on BHP Billiton can be found at: bhpbilliton.com
1 For example amounts already paid by Samarco, or held in Court or frozen accounts.
Sponsor: Merrill Lynch South Africa Proprietary Limited
Media Relations Investor Relations
Australia and Asia Australia and Asia
Emily Perry Tara Dines
Tel : +61 3 9609 2800 Mobile +61 477 325 803 Tel: +61 3 9609 2222 Mobile: +61 499 249 005
Email : Emily.Perry@bhpbilliton.com Email: Tara.Dines@bhpbilliton.com
Eleanor Colonico Andrew Gunn
Tel: +61 3 9609 2360 Mobile +61 407 064 748 Tel: +61 3 9609 3575 Mobile: +61 402 087 354
Email: Eleanor.Colonico@bhpbilliton.com Email: Andrew.Gunn@bhpbilliton.com
Paul Hitchins United Kingdom and South Africa
Tel: +61 3 9609 2592 Mobile +61 419 315 001
Email: Paul.Hitchins@bhpbilliton.com Jonathan Price
Tel: +44 20 7802 4131 Mobile: +44 7990 527 726
United Kingdom and South Africa Email: Jonathan.H.Price@bhpbilliton.com
Ruban Yogarajah Americas
Tel: +44 207 802 4033 Mobile +44 7827 082 022
Email: Ruban.Yogarajah@bhpbilliton.com James Wear
Tel: +1 212 310 1421 Mobile: +61 429 124 209
Jennifer White Email: James.Wear@bhpbilliton.com
Tel : +44 207 802 7462 Mobile +44 7827 253 764
Email: Jennifer.White@bhpbilliton.com Joseph Suarez
Tel: +1 212 310 1422 Mobile: +1 646 400 3803
North America Email: Joseph.Suarez@bhpbilliton.com
Jaryl Strong
Tel: +1 713 499 5548 Mobile: +1 281 222 6627
Email: Jaryl.Strong@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: Level 18, 171 Collins Street Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia London SW1V 1LH United Kingdom
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Members of the BHP Billiton Group which is
headquartered in Australia
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