Samarco Reparations
Samarco is a non-operated joint venture and BHP Brasil, one of BHP’s subsidiaries, holds a 50 per cent share alongside Vale. Following Samarco’s Fundão dam failure, BHP Brasil made a long-term commitment to support the people, communities and environment affected.
New Doce River Basin Agreement
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 agreement in detail
This is the next important step in our commitment to do the right thing following the dam failure. It was a tragedy in which 19 lives were lost and as one of Samarco’s shareholders in a non-operated joint venture, we will continue to support the reparation and compensation efforts in Brazil.
R$38 billion (US$7.9 billion)
R$100 billion (US$18 billion)
Approximately R$32 billion (US$5.8 billion)
Funding for new community programs
Compensation for Indigenous Peoples and traditional communities
A further compensation and indemnification system
The agreement is a result of extensive consultation and engagement by the Companies, federal and states governments and other public authorities, including public defenders and prosecutors, over an extended period to address the requirements of those affected.
Action so far
Event:
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2015 2015 November: Samarco Fundão dam failure in Mariana, Minas Gerais, Brazil
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2016 2015 November: Humanitarian and emergency actions
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2017 2015 December: Housing
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2018 2016 March: Transaction and Conduct Adjustment Agreement
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2019 2016 August: The Renova Foundation begins its work
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2020 2018 June: Signing of the TAC Governance
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2021 2021 April: Mediation by the National Council of Justice
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2022 2021 September: Renegotiation Agreement negotiations
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2023 2023 April: The renegotiation table led by the Regional Federal Court of the 6th Region (TRF-6) opens
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2024 2024 October: Agreement reached between Public Authorities and the Companies, which replaces the TTAC and other previous agreements
On the ground
Progress and performance*
The Renova Foundation was established by the Companies in 2016 and has already paid approximately US$4.7 billion in compensation and financial assistance to approximately 432,000 impacted people through its compensation systems. Over 91 per cent of resettlement cases have been completed.
The 42 programs currently overseen by the Renova Foundation will be closed and all reparation measured will be taken over by Samarco or the Federal or States governments.
*As of September 2024
432,000
US$7.9 billion
91%
*Includes private buildings (houses and stores), plots, public buildings and cash payments for resettlement.
US$4.7 billion
Over 200 families
114,000 people
180
1.5 million
40,000
BHP Group Ltd and BHP Group (UK) Ltd (former BHP Group Plc) are defendants in a group action underway in the English Court, filed in 2018 by an English law firm.
