Mariana tragedy: Gov'ts seek BRL 109 bi in compensation for damages
Brazil’s federal government, along with the states of Minas Gerais and Espírito Santo, has proposed a new BRL 109 billion compensation plan to Samarco, Vale, and BHP, the companies responsible for the 2015 Fundão tailings dam collapse in Mariana, Minas Gerais.
This counter-proposal follows the authorities' rejection of a BRL 72 billion offer from the companies. The renegotiation of the damage repair agreement is being mediated by the Federal Regional Court of the 6th Region (TRF6), located in Belo Horizonte, the capital of the state where the tragedy occurred.
The governments' original proposal was BRL 126 billion, deemed sufficient for the necessary reparations and compensation. However, authorities agreed to lower the amount to unblock the negotiations, the Federal Attorney General's Office stated last week.
"The government reiterates that the concessions made, despite the obligation for the responsible companies to fully repair the damage, are solely aimed at protecting the affected people and the environment. Therefore, they will not accept any proposal that they believe risks these objectives," emphasizes an excerpt from the statement sent to the TRF6.
The document calls for payments to be made over the next 12 years, considering the companies' initial proposal to pay over 20 years, minus the eight years that have already passed since the tragedy. The statement from the public bodies emphasizes that "the delay needs to be factored into the payment schedule, out of respect for those affected."
"The amounts should be used entirely to finance environmental and socio-economic reparatory and compensatory measures, which the government will assume once an agreement is reached," said the Federal Attorney General's Office in a statement.
The BRL 109 billion does not include amounts already spent by the mining companies on reparation measures, nor does it exclude estimated costs for fulfilling obligations that will remain the companies' responsibility, such as the removal of tailings from the Doce river.
Negotiations
More than eight years after the tragedy, which is considered the biggest environmental disaster caused by the mining sector in Brazil, the mining companies and the authorities have yet to reach an agreement to repair the damage.
On November 5, 2015, a dam owned by the Samarco mining company collapsed in the rural area of Mariana, releasing 39 million cubic meters of ore tailings into the environment. Nineteen people lost their lives. The mud devastated communities and caused widespread environmental destruction along the Doce river basin, reaching its mouth in Espírito Santo.
To address the damage, a Transaction and Conduct Adjustment Agreement was signed in 2016 among the federal government, the governments of Minas Gerais and Espírito Santo, Samarco, and shareholders Vale and BHP Billiton. This agreement led to the creation of the Renova Foundation, tasked with overseeing more than 40 reparation programs. All planned measures were to be funded by the three mining companies.
The current renegotiation aims to reach a new agreement that will settle over 80,000 accumulated lawsuits. These lawsuits raise concerns about the Renova Foundation's lack of autonomy, delays in rebuilding the destroyed communities, compensation amounts, and the failure to recognize a portion of those affected, among other issues.
