BHP approves $181m funding for Samarco disaster

BHP Billiton and its Brazilian joint venture partner Vale said they have approved $181m to fund remediation and compensation programs at the Samarco iron ore project after a dam burst in a year ago.

The two companies will extend a £230m line of credit to Samarco. The funding will be offset against a $1.2bn provision made in June.

“Funds will be released to Samarco only as required and subject to the achievement of key milestones,” BHP said.

“The short-term facility allows BHP Billiton Brasil to preserve the value of its investment as options for restart continue to be assessed,” BHP said in a statement.

“A restart of Samarco operations is important for Samarco, BHP Billiton Brasil, Vale, the local communities and for the Brazilian economy. Restart will occur only if it is safe and economic to do so and the necessary approvals have been obtained from Brazilian authorities.”

The dam collapse killed 19 people and destroyed a village.