Andrew Mackenzie, CEO of BHP Billiton Ltd
Andrew Mackenzie, CEO of BHP Billiton Ltd, speaks at the annual IHS CERAWeek conference in Houston, Texas March 4, 2014. Reuters/Rick Wilking

BHP Billiton has cancelled its Perth Christmas parties as a result of the Samarco mine dam disaster in Brazil, which claimed the lives of several employees working there.

The bursting of dams in the region has prompted local authorities to declare a state of emergency in around 200 towns affected by the collapse at the BHP Billiton and Vale joint operation. The mud and waste flood has damaged the Samarco areas, leading Rio Doce river basin and other affected towns of the region fall under a state of emergency coverage.

More than 600 people lost their homes in the dam collapse in early November. They are now living in hotels with proper food and shelter facilities available. The death toll remains 11, but 12 are still missing. The iron ore giant said that it would not undertake any Christmas function at sites and corporate offices in West Australia, seeing the disastrous effect of the incident on the Samarco people.

“Given the recent tragic events at the Samarco operations in Brazil, we have decided it would not be appropriate to continue with the end-of-year functions,” the Sydney Morning Herald quoted BHP Billiton’s spokeswoman as saying. “We are exploring opportunities to provide our community partners with donations of pre-purchased food.”

BHP Billiton’s chief executive Andrew Mackenzie apologised publicly last week for the destruction caused. “We are deeply sorry, so sorry, to everyone who has, and will suffer, from this terrible tragedy, to the friends and the families of those killed and missing and to those who have lost their homes and their possessions and who feel their livelihoods may be under threat,” he said.

He continued, “The devastation we have witnessed on site and around the community is quite heartbreaking, so our thoughts and prayers are with all of you in this distressing and uncertain time.

The year 2015 has been a challenging year for iron ore giants in the industry as they had been pushed to cut costs to make up for deteriorating iron ore prices in the market. As a result, Rio Tinto and Fortescue Metals Group have also cancelled any grand celebration for Christmas.

Rio Tinto is organising a Christmas function at its sites and one family gathering in Perth, while Fortescue will be hosting three functions in Perth for the staff and their spouses, thereby celebrating at regional plants.

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