Vale reaches settlement with Brazil for full reparation of Fundao dam collapse

Vale (VALE) said that Samarco, BHP Billiton Brasil (BHP) and Vale, together with the Brazilian Federal Government, the State Governments of Minas Gerais and Espirito Santo, the Federal and State Public Prosecutors’ and Public Defenders’ Offices and other Brazilian public entities reached today a definitive and substantial settlement of claims related to the Fundao dam collapse in Mariana, Minas Gerais, Brazil, on November 5, 2015. “The Definitive Settlement enabled a mutually beneficial resolution for all Parties under fair and effective terms, while creating definitiveness and legal certainty. It is the result of a high-level mediation process conducted by the Brazilian Federal Court of Appeals of the 6th Region, with open dialogue and transparency. The engagement of Brazilian authorities and public entities ensured legitimacy to the settlement, which was supported by social, environmental and technical criteria. This important agreement also reinforces our commitment to Brazilian society and to a better future for the people, communities and the environment.” said Gustavo Pimenta, Vale’s CEO. The Definitive Settlement provides for a total financial value of approximately 170B reais, comprising past and future obligations, to serve the people, communities and the environment impacted by the dam failure. It sets three main lines of obligations. Funds will support several compensation fronts, ensuring substantial resources for improvements in health, sanitation, fishing activities and community funding, and a dedicated approach to indigenous and traditional communities, and municipalities. Samarco will execute certain obligations, including a voluntary-based, simplified individual indemnification system, measures towards the Doce River environmental recovery and the completion of community resettlements, which already reached around 94% of total cases to be delivered as of September 30, 2024. Hence, part of the Renova Foundation’s 42 programs will be gradually transferred to Samarco or the authorities, while the remaining programs will be closed. The Renova Foundation’s governance body will cease on signing.