Settling of Brazil mining litigation will trigger major infra, water projects

The 170bn-real (US$30bn) compensation agreement related to the Mariana tailings dam disaster will enable massive infrastructure and water investments in certain Brazilian states.

The federal government, local authorities, and mining firms Samarco, Vale and BHP signed the agreement last week, ending Brazil’s biggest mining litigation.

Of the total compensation, which includes a sizeable portion of fresh funds, 100bn reais will be paid in installments over 20 years and Samarco will cover 32bn reais for individual compensation, resettlement and environmental remediation, among others. Previously, 38bn reais has been disbursed for remediation and compensation measures.

More specifically, 11bn reais is for "investment in basic sanitation in the basin municipalities, with the purpose of ensuring and anticipating the goals of universalization, with reduced rates," the attorney general’s office, which acted as intermediary, said in a statement. 

By law, municipalities must achieve universal water services coverage by 2033 or lose access to federal resources.

Regarding infrastructure, 4.3bn reais will be used for widening and improving federal highways BR-262 and BR-356, which are crossing Minas Gerais and Espírito Santo.

In addition, 3.6bn reais will go to healthcare infrastructure.

And the 49 municipalities affected by the collapse will receive 6.1bn reais to invest in local programs.