Agreement between mining companies and the Federal Public Prosecutor's Office could end R$ 155 billion lawsuit over Mariana.
Samarco and its shareholders, Vale and BHP Billiton, announced an agreement with the Federal Public Prosecutor's Office (MPF) that could lead to the dismissal of the public civil action that estimates the damages from the Mariana (MG) tragedy at R$ 155 billion; the Preliminary Adjustment Agreement still needs to be judicially approved; the Mariana tragedy occurred on November 5, 2015, when the Fundão dam, belonging to Samarco, collapsed and released more than 60 million cubic meters of tailings, resulting in the death of 19 people and is considered the country's biggest environmental tragedy.
Léo Rodrigues, correspondent for Agência Brasil - Samarco and its shareholders, Vale and BHP Billiton, announced today (19) that they have signed an agreement with the Federal Public Prosecutor's Office (MPF) that could lead to the extinction of the public civil action that estimates the losses from the Mariana tragedy (MG) at R$ 155 billion. This is a Preliminary Adjustment Term, which needs to be judicially approved, in which the mining companies agree to hire specialists appointed by the federal prosecutors to analyze the progress of the damage repair program.
The Mariana tragedy occurred on November 5, 2015, when the Fundão dam, belonging to Samarco, collapsed and released more than 60 million cubic meters of tailings. Nineteen people died. There was devastation of native vegetation, pollution of the Rio Doce basin, and destruction of the districts of Bento Rodrigues and Paracatu, as well as other communities. The event is considered the country's worst environmental disaster.
To repair the damage, Samarco, Vale, and BHP Billiton signed an agreement in March 2015 with the Federal Government and the governments of Minas Gerais and Espírito Santo. They estimated an investment of R$ 20 billion over approximately 15 years. Forty-one programs were defined to mitigate or compensate for the losses caused by the tragedy.
The Federal Public Prosecutor's Office (MPF) opposed this agreement and filed a lawsuit estimating the damages at R$ 155 billion. In August, federal prosecutors also managed to prevent the R$ 20 billion agreement from being judicially approved. However, the decision is not final, and the court will evaluate its approval. Even in the face of this uncertainty, mining companies and governments are moving forward with the 41 agreed-upon programs.
If the Preliminary Settlement Agreement receives judicial approval, federal prosecutors will have to appoint specialists, paid by the mining companies, to evaluate these 41 programs that are being developed. The Federal Public Prosecutor's Office (MPF) informed that it will request the hiring of professionals from four organizations: Latec, Integratio, Ramboll, and possibly the World Bank.
There will also be 11 public hearings to listen to the affected population. Depending on the diagnosis carried out, a Final Conduct Adjustment Agreement (TACF) may be signed on June 30 of this year, incorporating recommendations from the Federal Public Prosecutor's Office to the mining companies. In this case, according to a statement released by BHP Billiton, the R$ 155 billion lawsuit could be dismissed.
The Federal Public Prosecutor's Office (MPF) also released a statement highlighting that the Preliminary Settlement Agreement does not obligate it to waive the R$155 billion lawsuit. This decision can only be made if the parties manage to negotiate the signing of the Final Conduct Adjustment Agreement (TACF) on June 30th. The MPF also informed that the companies must suspend, until June, their requests for judicial approval of the agreement signed with the Federal Government and the governments of Minas Gerais and Espírito Santo.
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According to the Preliminary Settlement Agreement, the mining companies commit to providing a provisional guarantee of R$2,2 billion to safeguard future actions to repair the damage from the tragedy. This guarantee, consisting of financial investments, insurance and Samarco's assets, should replace a court-ordered deposit of R$1,2 billion that was pending. On January 13, the Federal Court had given a new deadline, which ends today (19), for the mining companies to make this deposit.
The companies will also have to allocate R$ 200 million to a reserve for the socio-environmental and socio-economic remediation of the Minas Gerais municipalities of Barra Longa, Rio Doce, Santa Cruz do Escalvado, and Ponte Nova. In a statement, Samarco emphasized that it "always understands mediation as the best path."
The Federal Public Prosecutor's Office (MPF) pointed out that the signing of the agreement constitutes an important signal regarding the possibility of reaching a settlement that can achieve the objectives of its task force. "Our goal is to obtain, as quickly as possible and in the most effective way, the implementation of environmental recovery and reparation programs for the affected communities," adds the text sent to the press.