A comprehensive agreement has been finalised between the Federal Government of Brazil, the states of Minas Gerais and Espírito Santo, public prosecutors, and public defenders (collectively, the Public Authorities) and Samarco, BHP Brasil and Vale (collectively, the Companies). The agreement was signed in Brasília in October 2024 and provides reparation for the impacts of Samarco’s Fundão dam failure in November 2015 and builds on the existing remediation and compensation work already performed by the Renova Foundation in Brazil. The total agreement value is R$ 170 billion¹ (US$ 31.7 billion²) which incorporates amounts already invested to date plus future payments and obligations³.

As part of a 12-month transition, Samarco is assuming the Renova Foundation’s remaining programs.

The Renova Foundation was established in 2016 as part of an initial agreement signed with public authorities. In the years since, the foundation has played a key role in remediating and compensating for the impacts of Samarco’s Fundão dam failure in 2015.

In its nine years of operation, the foundation served as an independent agent, responsible for delivering 42 socioeconomic and socioenvironmental programs, working closely with public authorities, Samarco and its shareholders BHP Brasil and Vale as well as civil society.

Up to September 2024, the Renova Foundation implemented projects valued at R$38 billion that supported the people, communities and environment affected by the dam failure.

The foundation oversaw approximately 430,000 people receiving compensation and financial aid. In Novo Bento Rodrigues and Paracatu, Renova led the construction of the districts and conducted the complex process in a collaborative way with residents. To date, over 90% of resettlement cases have been completed.

The foundation also led important environmental recovery actions, including the revegetation of more than 800 hectares on the banks of the Doce River, the repair of 113 tributaries, and support for forest restoration initiatives.

As a result of these activities, the water quality in the Doce River has returned to pre-dam failure levels, confirmed by independent and extensive monitoring. The foundation’s work was audited by Ernst & Young (EY) and the International Union for Conservation of Nature and Natural Resources (IUCN).

The New Doce River Basin Agreement, ratified by the Brazilian Supreme Court (STF) in November 2024, initiated a new phase in the remediation of the Doce River basin. It formalized the cessation of the Renova Foundation’s activities as part of a 12-month transition process, transferring remaining programs to Samarco or the relevant public authorities.

As a shareholder in Samarco as part of a non-operated joint venture, BHP Brasil acknowledges the dedication of the Renova Foundation’s employees, who contributed to significant progress in unprecedented circumstances. BHP Brasil remains committed to full remediation and a sustainable future for the region, through our support of Samarco as it implements the new agreement.

¹ All financial obligations are presented on a real, undiscounted basis and will accrue inflation at IPCA inflation rate. Payments will be made in Brazilian Reais.
² All USD amounts throughout are calculated based on actual transactional (historical) exchange rates related to funding provided to Fundação Renova (Renova Foundation) for investment to date and future spend is calculated using 28 June 2024 BRL/USD exchange rate of 5.56.
³ Under the Settlement Agreement, Samarco is the primary obligor for the settlement obligations and BHP Brasil and Vale are each secondary obligors of any obligation that Samarco cannot fund or perform in proportion to their shareholding at the time of the dam failure, which is 50% each.