21 December 2016
Samarco Mineração S.A (Samarco), BHP Billiton Brasil LTDA (BHP Billiton Brasil) and Vale. S.A (Vale) today agreed a non-binding term sheet outlining the general terms and conditions for the use of Vale’s Timbopeba pit by Samarco to deposit its tailings, should Samarco restart. Vale would transfer the Timbopeba pit to Samarco and, as compensation, Samarco would supply to Vale an amount of non-processed ore (Run-of-Mine – ROM) for a certain period.
A definitive agreement remains subject to a successful commercial negotiation, due diligence and relevant government approvals. These processes are likely to occur during 2017.
After obtaining the required environmental licenses, Samarco is expected to temporarily deposit its tailings in its own pit, Alegria Sul, for a period of 2 to 3 years of operations. The use of the Timbopeba pit may allow Samarco to operate for up to several years without a new tailings structure.
Samarco’s operations will be restarted only if it is safe and economically viable to do so. Restart is also contingent on a number of matters including obtaining required regulatory approvals and appropriate support of stakeholders.