Samarco Settlement Agreement

A U.S. court has allowed a class action lawsuit against Vale SA for $25 million for the ImK dam in November 2015, which broke out in the Samarco iron ore mine, killing 19 people. „The signing of this agreement is a good step forward,“ said Geoff Healy, BHP`s head of foreign affairs. The NY court approved Vales` $25 million transaction from Samarco Damm broke, but the company has not yet revealed exactly how much the deal will cost shareholders. As a result of the transaction agreement, the survivors themselves have compiled a list of 18 companies that can provide the services. Under the terms of the transaction, Samarco is required to hire all of them. On March 2, 2016, samarco Minerao S.A. (Samarco), Vale S.A. (Vale), BHP Billiton Brasil Ltda (the companies) and the Brazilian federal government, the Brazilian states of Espirito Santo and Minas Gerais, as well as other public authorities, reached a framework agreement to install a 20 billion BRL civil action.

As part of the agreement, the companies agreed to create a fund for remediation and remediation costs as well as to offset the effects of the failure of the Fundéo dam. Businesses, other parties to the framework agreement, the Public Prosecutor`s Office and the Public Defence Office have reached an agreement on the 20 billion BRL in civil, the Community`s participation in decisions on recovery and compensation programmes under the framework agreement (programs) and a two-year renegotiation process for these programmes and the continuation of the 155 billion BRL in civil (governance agreement). The governance agreement is conditional on the Brazilian federal government signing the agreement and is subject to ratification by the 12th Federal Court of Minas Gerais. Legal Rights As part of the governance agreement, the parties agreed to file a petition with the 12th Federal Court to dismiss the BRL`s 20 billion civil actions and also agreed on a procedure to dismiss some other public civil actions covering the same rights as the 155 billion BRL civil action. The governance agreement also provides for the suspension of the 155 billion BRL civil action for a period of two years after the ratification of the governance agreement. Renegotiation Process During the biennional fiscal year, the parties will work together to develop a single process for renegotiating programs and executing the US$155 billion civil application. The renegotiation process will take into account the principles and rules set out in the framework agreement and will aim to improve programmes with the participation of the communities concerned. The renegotiation of the programmes will be based on certain agreed principles, such as full reparation in accordance with Brazilian law, the requirement for a technical basis for all proposed changes, the results of socio-economic and socio-economic experts appointed by companies and prosecutors, and the consideration of the reactions of local and regional commissions. During the renegotiation period and pending the program review agreement, the Renova Foundation will continue to implement the programs in accordance with the terms of the framework agreement and the governance agreement. Governance Agreements A revised governance structure based on the framework agreement has been agreed to improve community participation in this process. The Interfederal Committee is currently composed of 12 members and the revised structure includes four other members, three of whom are appointed by the communities concerned and one by the Public Defence Office.