Renegotiation Agreement is signed and will continue the remediation process for the damages caused by the collapse of the Fundão dam

The renegotiation of the agreement that establishes the definitive bases for the actions to remediation and compensate for the damages resulting from the Fundão dam collapse was signed today (Oct-25), at the Planalto Palace in Brasília. The agreement amounting to approximately BRL 170 billion was signed among Samarco, Vale and BHP Brasil, the Federal Government, the Governments of Minas Gerais and Espírito Santo, the Federal and State Public Prosecutors' Offices and the Federal and State Public Defenders' Offices (MG and ES), among other public bodies. Renova Foundation signed the document as an intervening/consenting party. During the negotiations, mediated by Regional Federal Court of the 6th Region (TRF6), the Federal Public Prosecutors’ Office held public hearings in the affected territories and the Public Defenders' Offices presented the claims of the affected parties who reached out to it. 

The agreement establishes obligations for Samarco, as the primary liable party, and its shareholders, which include the transfer of funds to the government, as well as direct execution of some actions by the company. Of the overall amount, around BRL 38 billion was allocated until September 2024 for remediation and compensation actions carried out by the Renova Foundation. Additionally, BRL 132 billion will be earmarked for future actions, divided as follows:

1) BRL 100 billion as obligations to be paid to be transferred over the next 20 years to the federal, Minas Gerais and Espírito Santo governments, and the respective municipalities that join to the agreement, with the objective of financing public policy actions coordinated by these institutions;

2) BRL 32 billion in obligations to do, under the responsibility of Samarco, to support remediation and compensation actions related to cash compensation, resettlement and environmental rehabilitation in Mariana (MG) and in the Doce River Watershed, affected by the collapse.

The collapse of the Fundão dam is a milestone in our history, which we deeply regret and never forget. The agreement signed today reinforces the commitment of Samarco and its shareholders with the people, communities and environment and to continue the remediation and compensation for damages in a full and definitive manner”, said the CEO of Samarco, Rodrigo Vilela.

“The definitive agreement allowed for a mutually beneficial resolution for all parties on fair and effective terms, while creating legal certainty and security. It is the result of a high-level mediation process conducted by the Regional Federal Court of the 6th Region, with open dialogue and transparency. The engagement of Brazilian authorities and public entities guaranteed legitimacy to the agreement, which was supported by social, environmental and technical criteria. This important agreement also reinforces our commitment to Brazilian society and to a better future for people, communities and the environment,” said the CEO of Vale, Gustavo Pimenta.

“The collapse of Samarco’s Fundão dam in 2015 was a tragedy that should never have happened and must never be forgotten. As a shareholder in Samarco, a non-operated joint venture, BHP has always been committed to supporting the company in doing what is right for Brazilians, communities, organizations and environments affected by the dam collapse. The signing of a comprehensive agreement today with the Brazilian government and public authorities is an important reflection of this commitment. The terms of the agreement provide for broad and additional programs for people and the environment, including funds earmarked for the health system, economic recovery, infrastructure and integrated compensation and income support measures, including farmers, fishermen and indigenous and traditional communities. We recognize the significant commitment of the Brazilian government and public authorities to achieving this milestone,” said the CEO of BHP Brazil, Mike Henry.

The renegotiation agreement allows for the resolution of public civil actions and other legal proceedings related to the socio-environmental and socio-economic impacts resulting from the collapse. The mediation by the TRF-6, together with the actions of Brazilian public institutions, ensures that the remediation process is conducted in a transparent manner, guaranteeing the rights of the affected people and communities, reaffirming Brazil as the appropriate legal environment for the full fulfillment of the remediation.

Completion of remediations

Samarco's obligations regarding compensation include the conclusion of the compensation process, offering a last opportunity to those whose requests were denied, provided that they are registered or have a complaint protocol with Renova Foundation by December 2021 and have not received compensation for general damages, among other criteria.

In terms of resettlement, the new agreement will allow the completion and definitive delivery of the Novo Bento Rodrigues and Paracatu resettlements, which are already at an advanced stage, with 85% of the residences and public facilities completed, under the supervision of the Public Prosecutor's Office of Minas Gerais and technical advisors. For the resettlement of Gesteira, in May 2023, the Court approved a collective agreement for the district with the transfer of BRL 126 million.

On the environmental area, the new agreement provides for the continuation of actions such as rehabilitation of affected areas, compensatory measures along the Rio Doce Watershed, reforestation of 50 thousand hectares, recovery of 5 thousand springs, restoration of banks and the aquatic environment, sanitation and improvement of water quality in the watershed. Feasibility studies will also be carried out for additional sediment removal at the Risoleta Neves HPP (Candonga) and management of impacted areas.

General information on the agreement and Samarco's obligations to do are available at www.samarco.com/reparacao.

After ratification of the new agreement, Samarco will continue to detail the actions to be carried out by the company.

Renova Foundation and transition

Renova Foundation coordinated and executed significant remediation and compensation actions over the eight years, as provided for in the Transaction and Conduct Adjustment Term (TTAC), signed in March 2016. By September 2024, BRL 38 billion had been allocated for actions carried out by Renova, allowing the completion of 85% of the resettlements, the payment of BRL 18.04 billion in compensation and Emergency Financial Aid in 447.2 thousand agreements. The environmental actions included the restoration of approximately 38 thousand hectares and the rehabilitation of approximately 2,600 springs, in addition to investments of BRL 162 million in sanitation initiatives.

The actions carried out by the Renova Foundation, which constitute an obligation of Samarco within the scope of the renegotiation, will continue in progress. As provided for in the document, the transfer of the initiatives carried out by Renova to Samarco will be done gradually and in a planned manner. 