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.

Farming and fishing professionals in the Doce River Basin registered with the relevant federal government entities will receive support as part of this new program for up to 48 months.

The New Doce River Basin Agreement finalized in October 2024 delivered a number of definitive resolutions addressing the impact of Samarco’s Fundão dam failure in 2015. It formalized  funding of R$170 billion and a series of actions for the socioenvironmental and socioeconomic recovery of the region, including compensation and environmental restoration projects.

Reflecting on the agreement reached between the public authorities and the companies (Samarco, BHP Brasil and Vale), Guilherme Tângari, Head of Sustainability at BHP Brasil said that the priority is to ensure full reparation for damages and deliver programs that ensure a sustainable future for the affected communities.

“The impacts of Samarco’s Fundão dam failure were felt across the Doce River Basin and there are a number of professions unique to the region, including farmers and fishers, whose livelihoods were impacted,” Guilherme said. “It’s why the new Income Transfer Program is so important.”

The Income Transfer Program (PTR) will compensate family farmers and artisanal fishermen for lost income as a result of the dam failure. The program includes financial resources of R$3.75 billion, split between two focus areas.

PTR-Rural will benefit farmers who, as of September 2024, were carrying out activities on properties located within five kilometres of the riverbeds of the Gualaxo do Norte, Carmo and Doce rivers in Minas Gerais, and in the Doce River floodplain, between Baixo Guandu and the river mouth, in Espírito Santo.

PTR-Pesca will support professional artisanal fishers registered with the General Registry of Fishing Activity (RGP) as of September 30, 2024, and residing in municipalities specifically listed in the agreement, covering the affected areas in Minas Gerais and Espírito Santo.

The federal government will oversee PTR-Rural through the Ministry of Agrarian Development and Family Farming (MDA) and the Ministry of Fisheries and Aquaculture (MPA) for PTR-Pesca. A federal financial institution will be contracted to operationalize the payments, ensuring that the resources reach the beneficiaries efficiently, including in municipalities without bank branches.

As a shareholder in the Samarco non-operated joint venture, BHP Brasil remains committed to supporting Samarco as it works to deliver on its obligations as part of the new agreement and finalize definitive support for those affected by the dam failure.

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.