A comprehensive agreement¹ was finalized between the Federal Government of Brazil, the states of Minas Gerais and Espírito Santo, public prosecutors, and public defenders (collectively referred to as Public Authorities) and Samarco, BHP Brazil, and Vale (collectively referred to as Companies). The agreement was signed in Brasília in October 2024 and provides for reparation for the impacts of the Samarco Fundão dam collapse that occurred in November 2015, building upon the reparation, indemnification, and compensation work already carried out by Fundação Renova in Brazil. The total value of the agreement is R$ 170 billion² (US$ 31.7 billion), which incorporates values already invested to date, in addition to future payments and obligations³.

Of this amount, R$ 38 billion has already been transferred by Fundação Renova until September 2024. The remaining R$ 132 billion is divided into R$ 100 billion for payment obligations, to be transferred over the next 20 years to the federal government, the governments of Minas Gerais and Espírito Santo, and the 49 municipalities provided for in the Agreement. Another R$ 32 billion constitutes "obligations to do" (actions to be carried out), under the responsibility of Samarco. In the eight months since the signing of the Agreement, the following progress has been recorded:

Indemnities and Socioeconomic Support

The Definitive Compensation Program (PID) was one of the main compensation pathways provided for in the Agreement. By August 18, 2025, more than 300,000 people had joined the system. To date, R$6.5 billion had been disbursed through this program. Another modality was the Agro-Fishing Compensation System, with R$95,000 paid to eligible professional fishermen and family farmers. Payments are already underway, and the existing compensation programs are expected to be completed by 2026.

Resettlements

The resettlement process includes the completion of the new districts of Novo Bento Rodrigues and Paracatu, as well as solutions for families who opted for assisted purchase or compensation for housing rights.

To date, 95% of the properties (houses, lots, farms, businesses, and private assets for collective use) have been delivered or have had their payments completed. This corresponds to 695 out of a total of 729 cases resolved. In the new districts, 95% of public facilities, such as schools and health clinics, have been completed.

Environmental Recovery

The remaining environmental recovery actions in the Rio Doce Basin, which include reforestation, monitoring, and compensation, are conducted by Samarco and are expected to last up to 15 years.

In the first months of the Agreement's implementation, 41.5 thousand hectares were fenced and protected for compensatory reforestation, representing 83% of the 50 thousand hectares planned. For spring recovery, 3,773 were fenced and protected, corresponding to 75.46% of the 5 thousand planned. The Environmental Recovery Plan, detailing actions until 2040, was delivered in May 2025.

Communication and Engagement

A public compensation campaign led by Samarco, which began in December 2024 and is expected to continue until September 2025, has used television channels, radio, portals, social media, and sound trucks to disseminate information. There are also engagement initiatives in the territories along the Rio Doce Basin.

In addition, the Federal Government has carried out engagement initiatives, such as the Interministerial Caravan, which visited 22 territories in Minas Gerais and Espírito Santo. Coordinated by the General Secretariat of the Presidency and with the participation of several ministries, the Caravan included 90 technicians to inform and answer questions from the local population about the terms of the New Agreement, including services for Indigenous peoples, quilombolas, and workers in traditional activities.

Commitment and Transparency

BHP Brasil, as a shareholder in Samarco, a non-operated joint venture, supports Samarco in fulfilling its obligations under the New Agreement. Transparency and dialogue with communities and authorities are maintained through various channels, which provide information on progress and completion of reparation actions. We remain focused on supporting the implementation of the agreement, believing in its effectiveness in compensating people, communities, and the environment.

1 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.

2 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.

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.