Transfers made by Samarco confirm the schedule and ensure autonomy for state and municipal investments

This April, Samarco paid the third installment in the amount of BRL 6.82 billion, meant to fund public policy at a federal, state and municipal level, within the schedule established by the New Rio Doce Agreement, ratified by the Federal Supreme Court (STF). The amounts are transferred to government authorities so that they can autonomously implement actions to increase quality of life for populations. The flow of fund transfers reinforces the long-term governance of the New Agreement, expected to be effective for 20 years.

With this transfer, the full amount of funds allocated since the ratification of the New Agreement amounts to BRL 17.69 billion in the execution of payment obligations. “We are consistently moving forward in the execution of the New Agreement, with transfers that reinforce a long-term agenda. These are regular funds that enable structure-level and sustainable public policies, with a positive direct impact to communities”, states Gustavo Selayzim, director of Strategy, Finance and Supplies at Samarco.

Economic impact and fund management

The financial investments enable progress in areas such as health – with transfers to strengthen the Brazilian Unified Public Health System (SUS) -, basic sanitation, flood control, road infrastructure and income strengthening payments, such as the Income Transfer Program (PTR, Programa de Transferência de Renda) and for Minas Gerais and Espírito Santo fishermen and fisherwomen. In sanitation, for instance, each Real invested generates approximately four Reais of savings in public health, according to the Trata Brasil institute. Furthermore, the execution of work stimulates the generation of direct and indirect employment.

Though most of the funds are transferred to the Federal and State governments, these amounts are mandatorily applied to projects, works, and services carried out in the municipalities contemplated by the New Agreement, ensuring capillarity for reparations, such as the full duplication of the BR-356 highway between Ouro Preto and Mariana. As for the state of Espírito Santo, the Agreement grants the state the condition to carry out structural works for its development, such as the duplication of BR-262.

Direct execution

In parallel to the payment obligations, Samarco continues to carry out obligations undertaken by the company, including the delivery of the new districts of Novo Bento Rodrigues and Paracatu, the continuity of environmental works and the payment of compensation and financial aid, including the Definitive Compensation Program (PID, Programa Indenizatório Definitivo).

Detailing of accumulated amounts

·       Payment Obligations: BRL 17.69 billion

- Federal Government: BRL 9.00 billion (Fundo Rio Doce: fishery, health, and infrastructure).

- Federal Government: BRL 1.00 billion (Traditional Peoples and Communities)

- Minas Gerais: BRL 3.95 billion (State) and BRL 231.10 million (Municipalities).

- Espírito Santo: BRL 2.35 billion (State ) and BRL 85.10 million (Municipalities).

- Justice Institution: BRL 1.06 billion

· Obligations to Act: BRL 24.4 billion (payment of compensation and financial aid, new districts, and environmental reparations)