Prosecutors demand US$30bn compensation for Mariana tailings dam collapse

Compensation for the collapse of a tailings dam operated by iron ore pellet maker Samarco Mineração in Mariana, in southeast Brazil’s Minas Gerais state, could be considerably more than the deal reached for another tailings dam disaster. 

In November 2015, the dam operated by Samarco – a JV between Vale and BHP – collapsed, causing 19 deaths and Brazil's worst ever environmental catastrophe.

An avalanche of mud and tailings polluted rivers in Minas Gerais and Espirito Santo states, reaching the Atlantic Ocean.

Then in January 2019, a dam operated by Vale in Brumadinho, also in Minas Gerais, collapsed, killing nearly 300 people and also causing severe environmental damage, although not to the same extent as the Mariana disaster. 

In February, Vale reached a compensation deal with Minas Gerais and prosecutors for victims of the Brumadinho incident. Representing the largest settlement of its kind in Latin America, Vale will pay 37.7bn reais (US$7.26bn) to the local authorities.

Now prosecutors are seeking an even larger amount from Samarco, according to Jarbas Soares Júnior, Minas Gerais’ chief prosecutor, newspaper O Estado de Minas reported. 

A taskforce comprising state and federal prosecutors is demanding compensation from Samarco of 155bn reais (US$30bn).

In the case of Brumadinho, prosecutors began talks with Vale requesting compensation of 52bn reais before the final amount was agreed. Talks began in 4Q20 and an agreement was reached in February.

"Everything will depend on the meetings and the discussions that take place," said Soares Júnior.

Talks on a Mariana deal started June 22 and prosecutors expect an agreement within four months.