BHP makes payments for Samarco remediation, plans for mine restart

BHP Billiton will make an immediate cash payment into a remediation and compensation fund for the bursting of dam owned by its Samarco joint venture, as well as suppling funds to support the restarting of operations of the mine.

BHP has agreed to pay $158m to a fund set up in Brazil to deal with the bursting of the Samarco tailings dam that killed 19 people in 2015.

This $158m will be offset against the group's provision for the Samarco dam failure, where earlier this week the companies and local and federal governments agreed a new two-year deadline to settle a 155bn reais (£31bn) civil claim.

The FTSE 100 mining giant, which jointly owns the local mining outfit Samarco Mineração with Brazil's Vale, has also offered up to $53m to the joint venture to carry out ongoing repair works, maintain Samarco's facilities and support the restarting of operations.

Funds from a new short-term facility will be released to Samarco only as required, and subject to achievement of key milestones, BHP said.