BHP Billiton has reached a deal with prosecutors in Brazil that will put a two-year pause on compensation claims arising from the Samarco mining disaster of 2015 that left 19 people dead.

The agreement means the FTSE 100 mining giant will escape an imminent fine and could pave the way for the iron ore mine’s eventual restart.

Under the deal the Brazilian government and state and federal prosecutors will roll their competing claims into one definitive settlement that will cover compensation to victims’ families as well as extensive remediation work in the affected area.

In November 2015 two villages were destroyed when a dam at the mine co-owned by BHP and Brazilian company Vale burst, sending... </s> BHP Billiton Brasil, the miner Vale and Brazilian public authorities have reached an agreement to settle a $US5.30 billion lawsuit related to a dam failure in 2015 that killed 19 people and destroyed several towns.

Under the agreement, announced this morning, the mining companies have agreed to establish a fund designated for clean-up costs, remediation works and compensation, relating to the impacts of the Fundao tailings dam disaster at the Samarco joint venture.

In a statement BHP said the agreement “enhances community participation in decisions related to the remediation and compensation programs,” while also establishing a process to progress settlement of a BRL155 billion (about $US41.5 billion) Civil Claim.

BHP said the new “Governance Agreement” was conditional on Brazil’s federal government signing the deal, and was also subject to ratification by the 12th Federal Court of Minas Gerais.

The new agreement also allows for the $US41.5 billion civil claim to be suspended for two years, after the ratification of the new governance agreement. </s> MELBOURNE (dpa-AFX) - Vale SA (VALE) and BHP Billiton Ltd. (BHP.AX, BLT.L, BBL, BHP), the owners of Brazilian mining company Samarco Mineracao SA, said that they agreed with Brazilian authorities to suspend for two years a 155 billion real or $41 billion civil claim over the catastrophic 2015 collapse of a tailings dam while talks continue.



The companies, federal prosecutors and the governments of the states of Minas Gerais and Espirito Santo will also ask to dismiss a separate civil claim, for 20 billion reais. The entire agreement needs to be approved by a federal court and by the federal government.



The dam, owned by Samarco and located in the Brazilian state of Minas Gerais, collapsed in November 2015, resulting in the deaths of 19 people and polluting more than 400 miles of waterways. Samarco Mineração S.A., jointly owned by BHP Billiton Brasil Ltda and Vale S.A, shut down operations following the accident.



During the two year period, the parties will work together to design a single process for the renegotiation of the Programs and progress settlement of the 155 billion reais Civil Claim. The renegotiation process will take into account the principles and rules established under the Framework Agreement, and will be aimed at improvement of the Programs, with the involvement of the affected communities.



The renegotiation of the Programs will be based on certain agreed principles, such as full reparation consistent with Brazilian law, the requirement for a technical basis for any proposed changes, the findings of the socio-economic and socio-environmental experts appointed by both the Companies and the Prosecutors, and consideration of the feedback from the Local and Regional Commissions.



The two civil suits, for 20 billion reais and for 155 billion reais, generated uncertainty over the final amount the companies will have to pay as deadlines for resolutions were postponed. With the smaller suit expected to be dismissed and the other talks extended, the agreement is a step in the right direction, but it doesn't clear up some key questions, some analysts reportedly said.



Copyright RTT News/dpa-AFX </s> RIO DE JANEIRO — Prosecutors charged 21 Brazilian and foreign mining executives with manslaughter and various environmental crimes Thursday, nearly a year after a mine dam burst killed 19 people and polluted hundreds of miles of rivers and streams.

The Attorney General's Office in the state of Minas Gerais said those charged are mostly Brazilians and also include American, Australian and British board members and directors at the Brazilian mining companies Samarco and Vale, and Australia's BHP Billiton.

Samarco is a joint venture of the two larger companies. Former CEO Ricardo Vescovi, current COO Kleber Luiz de Mendonca and others are accused of causing what many call South American nation's worst environmental disaster. All three companies issued statements denying the charges.

Federal prosecutor Jose Adercio Leite Sampaio alleged that experts told executives, board members and other company officials that the basin of mine dump could burst, but they chose to ignore the danger and continue extracting from the rich iron ore deposit to compensate for falling commodities prices.

"They deliberately prioritized money over safety," Sampaio said in a news conference. "They knew there were problems and did not make the decisions that could have improved safety."

When the dam ruptured it flooded the area with some 40 million cubic meters of waste, and prosecutors also filed environmental charges related to the death of animal life.

Prosecutors said they found an internal company document from the breach that estimated such an accident could cause 20 deaths and serious environmental damage and interrupt business for up to two years.

In a statement, Samarco, which is also appealing seven fines handed down by the Environment Ministry, insisted the companies did not know the dam was in danger of collapsing.

It argued that the Attorney General's Office disregarded evidence and testimony "proving the company had no prior knowledge of risks to its structure."

Vale also said its executives at Samarco were never informed of anomalies that "could present real risks" in the basin and promised to prove their innocence in court.

BHP Billiton rejected the charges and said it would "fully support each of the affected individuals in their ."

The companies also face a class-action lawsuit seeking $43 billion in social, environmental and economic damages. Prosecutors said they arrived at that amount by comparing it to the cost of repairing damage from BP's Deepwater Horizon oil spill in the Gulf of Mexico. </s> BHP and its joint-venture partner Vale have reached a framework agreement with Brazilian prosecutors to negotiate a settlement of a $A55.35 billion claim relating to the fatal 2015 Samarco mine disaster.

BHP says an earlier 20 billion real ($A7.14 billion) civil claim will be dismissed and that the companies will negotiate settlement of a 155 billion real ($A55.35 billion) claim, which will be suspended for two years to allow talks.

"The renegotiation process will take into account the principles and rules established under the framework agreement, and will be aimed at improvement of the programs, with the involvement of the affected communities," BHP said in a statement on Tuesday.

The tailings dam collapse at the Samarco mine killed 19 people and led to widespread environmental damage.

BHP chief external affairs officer Geoff Healy called the signing of the agreement "a good step forward".

"We have a framework that brings all of the parties together, where we can work toward improving and refining the remediation and compensation process," Mr Healy said.

"The governance agreement creates a more stable environment for ongoing work and brings more community members and prosecutors into the process."

An investigation by geotechnical specialists in 2016 found the deadly dam collapse was the result of a series of design and drainage issues over a number of years.

The disaster also caused a massive spill of waste material, polluted a major river and displaced several small communities.

Operations at Samarco have remained suspended as talks continue with the government to obtain the required environmental licences.

At 1150 AEST, BHP's ASX-listed shares were down 47.5, or 1.4 per cent, at $32.505 - broadly in line with the overall resources sector. </s> Image copyright Getty Images Image caption Millions of tonnes of waste were released in the dam's collapse

Brazilian prosecutors have filed homicide charges against 21 people a year after an iron ore mine disaster in the state of Minas Gerais.

They include several Brazilians, two Americans, a South African, an Australian, a Briton and a French man.

The accused were employed at the time by the companies involved - Brazil's Samarco and Vale, and BHP Billiton.

In November 2015 a mine dam burst, killing 19 people and polluting miles of Brazil's waterways.

According to the lead prosecutor in the case, Jose Leite Sampaio, the companies were aware there was a risk of collapse but ignored it. They immediately rejected the charges and said they would defend their staff.

Mr Sampaio accused Brazilian mining company Vale, Anglo-Australian giant BHP Billiton and iron ore producer Samarco, which they co-own, of pursuing profits rather than attending to safety.

"Security was always of secondary importance. The increase in production at Samarco sought to compensate for the falling value of the ore in order, not only to maintain, but also to boost profits and dividends," Mr Sampaio said in a televised news conference near the site of the disaster.

Support for accused

Vale said in a statement that it "vehemently rejects the charges" and that it would defend its staff members. It said the evidence showed there was no knowledge the dam could fail before the collapse.

BHP said it "rejects outright the charges against the company and the affected individuals. We will defend the charges against the company, and fully support each of the affected individuals in their defence."

Before the case can go to trial, the charges need to be approved by a judge.

Image copyright AFP Image caption Horses, mules and dogs got stuck in the mud, which travelled miles downstream

Millions of tonnes of muddy mine waste were released on 5 November 2015 when a dam collapsed. A village was flattened and drinking water was affected for hundreds of thousands of people. The sludge eventually pooled out into the Atlantic Ocean.

The disaster drew comparisons with the Deepwater Horizon oil rig disaster in the Gulf of Mexico, as the Brazilian authorities sought redress for the environmental devastation from the companies it deemed responsible.

Analysis: Daniel Gallas, South America Business Correspondent, Rio de Janeiro

The mining companies have managed to reach a deal with Brazil's environmental authorities to set up an institute that will help clean up the pollution and rebuild some communities for the next 10 years.

But prosecutors tasked with finding the guilty parties are less willing to compromise.

In a 273-page document, they blamed top managers, accusing them of merely using "bandages" to deal with a serious threat.

Prosecutors also want the accused to respond to a popular jury, assuming these charges get the go-ahead from the judge.

The companies responded by accusing prosecutors of ignoring the evidence against those claims.

As the Samarco tragedy approaches its first anniversary, it seems that this case will still drag on for years to come.

The accused include Ricardo Vescovi, who was chief executive of Samarco at the time of the disaster.

Under Brazilian law qualified homicide is similar to, but more serious than, a manslaughter charge. The accused, if found guilty, could face sentences of up to 54 years. </s> Rio De Janeiro/Melbourne — Samarco and parent companies Vale and BHP Billiton have signed a deal with Brazilian authorities that settles a 20-billion reais ($5.30bn) lawsuit related to a 2015 dam burst that killed 19 people, Vale and BHP said on Monday.

The agreement, signed by prosecutors from the federal government and the states of Minas Gerais and Espirito Santo, mandates improvements in governance for the Renova Foundation, created to help victims of the accident, Vale said.

In a separate statement, BHP said the agreement set a two-year timeline to reach a settlement over a separate 155-billion reais lawsuit, which would remain suspended while the parties continued to negotiate.

"It’s good that it moves along closer to a resolution obviously, and potentially caps some of the risk around [the settlement], given the earlier numbers that had been put out there," said portfolio manager Andy Forster of Sydney’s Argo Investments, which has holdings in BHP. </s> RIO DE JANEIRO (Reuters) - Samarco and parent companies Vale VALE5.SA and BHP Billiton (BHP.AX) signed a deal with Brazilian authorities that settles a 20 billion real ($5.30 billion) lawsuit related to a 2015 dam burst that killed 19 people, Vale said on Monday.

The agreement, signed by prosecutors from the federal government and the states of Minas Gerais and Espirito Santo, mandates improvements in governance for the Renova Foundation, created to help victims of the accident, Vale said. </s> MELBOURNE (dpa-AFX) - Anglo-Australian mining giant BHP Billiton plc (BHP.AX, BLT.L, BBL, BHP) has rejected criminal charges by Brazilian prosecutors filed against the company and its current and former employees in relation to last year's fatal Samarco dam disaster, which killed 19 people.



BHP Billiton Brasil said it will defend the charges against the company, and fully support each of the Affected Individuals in their defence of the charges against them.



BHP Billiton Brasil said, 'We are yet to receive formal notification of these proceedings.'



Brazilian prosecutors have charged 26 people in connection with the Samarco mine disaster. Of those charged, 21 have been accused of qualified homicide. They include several Brazilians, two Americans, a South African, an Australian, a Briton and a French man. The accused were employed at the time by the companies involved - Brazil's Samarco and Vale, and BHP Billiton.



Copyright RTT News/dpa-AFX
International mining firm BHP Billiton signs an agreement with Brazilian authorities over criminal culpability and civil compensation liability over a mine site collapse that killed nineteen. The deal halts litigation for up to two years but does not confirm a final amount for a settlement.