New Agreement to Support Reparation and Recovery Following Fundão Dam Tragedy

Comprehensive agreement

BHP Brasil, with Samarco Mineraçao and Vale have reached a comprehensive agreement with Federal Government of Brazil, along with the States of Minas Gerais and Espirito Santo, public prosecutors, and defenders where they have settled multiple claims related to the Fundão dam failure of November 5, 2015. This Agreement, pending Supreme Court approval, represents a crucial step forward in supporting the communities, individuals, and environments affected by this tragic event.

The Agreement, resulting from negotiations with Brazilian Federal and National Courts since early 2021, provides R$170 billion (US$31.7 billion) to address the impacts of the dam failure, building on the significant progress by the Renova Foundation, which has already invested R$38 billion (US$7.9 billion) in remediation.

Key programs

• Environmental & Community Investment: R$11B for universal water sanitation, R$12B for health programs, and R$6.5B for economic recovery initiatives.

• Infrastructure Improvements: R$4.3B dedicated to road and infrastructure upgrades and a R$2B flood response fund.

• Support for Vulnerable Groups: R$8B for Indigenous and Traditional communities, allocated based on consultations with these groups, plus specific compensation for fishermen, farmers, and individuals with water damage claims.

• Education, Culture, & Security: R$5.7B for social programs, R$3.75B for income assistance, and R$2.4B to foster fishing and biodiversity.

Collective commitment

Mike Henry the BHP Chief executive officer has expressed the importance of this agreement. He has stated: “The Samarco Fundão dam failure in 2015 was a terrible tragedy. It should never have happened and must never be forgotten. As shareholders in the Samarco non-operated joint venture, BHP Brasil and Vale have always been committed to supporting Samarco to do what’s right by the Brazilian people, communities, organisations, and environments affected by the dam failure. Today’s signing of a comprehensive agreement with the Brazilian government and public authorities is an important reflection of that commitment. It delivers expanded and additional programs for the environment and for the people, including designated funding for the health system, economic recovery, improved infrastructure and extensive compensation and income support measures, including for farmers, fisher people and Indigenous and Traditional communities. We acknowledge the significant commitment of the Brazilian Government and public authorities in reaching this milestone.”

This signed agreement reflects all companies’ collective commitment and responsibilities and delivers tangible support for affected regions.