BHP Billiton and Vale to face $93 million fine for the twin dam disaster in Brazil

BHP Billiton, along with Vale, has been charged with an initial fine of 250 million reais (AU$93 million) for the twin dam burst in south-eastern Brazil that killed nine people and washed off two states. Brazilian President Dilma Rousseff made the announcement following her visit to the affected areas on Thursday.

Federal prosecutors are planning to work jointly with the state prosecutors to find out if there has been any crime involved behind the whole incident that concerns Samarco, a joint venture by mining companies BHP Billiton and Vale.

The disaster was set off with the failing of two dams that held waste-water from the Samarco-owned Germano iron ore mine. It flattened two of the nearby towns in the state of Minas Gerais with the release of around 60 million cubic tonnes of waste-water and sludge. The BHP Billiton said in a statement on Friday that the death toll has risen to nine while 19 people are still missing. It added that four people who went missing previously have been found.

“We offer our deepest sympathies to the families and friends of those who have died as a result of this tragic incident,” the statement said.

It further added, “BHP Billiton and Vale have pledged to support Samarco in establishing an emergency fund for community support and rebuilding works. It is our intention to work with the authorities to ensure that this fund is functioning as soon as practicable.”

Rousseff said that the fine has been imposed on the mining companies by the Brazilian environmental regulator IBAMA for polluting the river and for causing damages to urban areas where water service had been suspended. "We are determined to hold responsible those who are responsible for this," Rousseff told reporters on Thursday.

The Guardian reported that a person closely acquainted with how the Brazilian government works said that the fine could increase further from the preliminary amount.

The mining minister of Brazil, Eduardo Braga, announced on Thursday that the other dams in the sector would be examined by the government to determine if they hold any potential threat to the nearby settlements.

The president spoke to BHP Billiton and Vale chief executives Andrew Mackenzie and Murilo Ferreira on Wednesday after they held a joint press conference to apologise for the damages caused by the disaster. Rousseff told the chief executives that the Brazilian government expects them to pay compensation to more than 500 people who lost their homes and fund the rescue and the clean-up processes.

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