Mariana tragedy: Reparation proposals stir debate among victims
Municipal authorities involved in lawsuits filed in England and the Netherlands over the Samarco dam collapse met in Belo Horizonte, Minas Gerais state, on Thursday (Jan. 23) to discuss compensation claims. Lawyers from the English firm Pogust Goodhead, representing them in these cases, also attended the meeting.
This marks the seventh meeting, but it has become one of the most significant. Municipalities now face a critical decision: whether to continue pursuing claims in foreign courts or accept appeals tied to the new reparation agreement signed in Brazil. The deadline for this decision is March 6.
The tailings dam that collapsed in November 2015 was located in a rural area of Mariana, Minas Gerais, within the Samarco mining complex—a joint venture between Anglo-Australian BHP Billiton and Brazilian Vale. The disaster claimed 19 lives and severely impacted communities in dozens of municipalities across Minas Gerais and Espírito Santo along the Doce River Basin. Since the incident, dissatisfaction with the reparations process in Brazil has prompted the filing of lawsuits in foreign courts.
The largest lawsuit, filed in 2018, is pending in English courts and targets London-based BHP Billiton. Approximately 620,000 affected individuals, along with municipalities, indigenous and quilombola communities, businesses, and religious institutions, are seeking compensation for a wide range of damages. These include loss of property and income, increased expenses, psychological trauma, displacement-related impacts, and lack of access to essential resources such as water and electricity, among others.
Municipalities affected by the disaster are also plaintiffs in a lawsuit filed in the Netherlands, which targets the Dutch subsidiaries of Vale and Samarco. This case, however, is still in its early stages, having been accepted by the Dutch judiciary in March of last year.
The new agreement signed in Brazil aims to resolve longstanding impasses that persist more than nine years after the tragedy. It seeks to renegotiate all measures outlined in the 2016 Transaction and Conduct Adjustment Agreement, which was signed by the mining companies, the Brazilian federal government, and the governments of Minas Gerais and Espírito Santo. As part of this new arrangement, the Renova Foundation, previously established to oversee the reparation process, has been dissolved.
One of the new clauses mandates a transfer of BRL 6.1 billion to be distributed among 49 municipalities, with payments made in annual installments over 20 years. These funds are designated for various initiatives, including agriculture promotion, road infrastructure improvements, cultural and tourism development, education, sanitation, and healthcare. However, to join the new agreement, municipalities must withdraw from legal proceedings underway outside Brazil.
Decisions
So far, Samarco has listed 12 agreements, of which only five were part of the lawsuit filed in England. Of these, four—two in Minas Gerais and two in Espírito Santo—have already been officially withdrawn by the court.
The law firm Pogust Goodhead has confirmed four withdrawals so far and asserts that 42 municipalities remain involved in the English lawsuit. The meeting held on Thursday (23) in Belo Horizonte was private, and its details are considered confidential. In its regular reports, the firm has presented favorable assessments for the affected parties and is working to persuade the municipalities that staying in the English lawsuit is the most advantageous course of action.
The case is valued at BRL 260 billion, and in the event of a conviction, payment would be made in cash. However, there is no clear timeline for the case's conclusion, and it could potentially extend over a prolonged period.
The mayor of Mariana, Juliano Duarte, has expressed his willingness to wait. He argues that the BRL 1.2 billion allocated to Mariana in the new Brazilian agreement is insufficient given the extent of the impact suffered. "In the British courts, the amount claimed is BRL 28 billion, and even a partial settlement—such as 30 or 50 percent—would already far exceed the amount outlined in the national agreement," he points out.
Improving the terms
A movement led by several municipalities is working to persuade the mining companies to improve the terms outlined in the renegotiation agreement. The Public Consortium for the Defense and Revitalization of the Doce River (Coridoce), consisting of the mayors of the affected towns, is leading this effort.
The proposal includes not only an increase in the amounts but also a reassessment of the planned installment plan, which has been a major source of dissatisfaction. Municipalities have expressed frustration, claiming that these decisions were made without their input. Representatives from the municipalities were excluded from the negotiating table for the new agreement, leading them to demand further negotiations on these matters. However, if no progress is achieved, some municipalities are prepared to continue pursuing the English lawsuit.
Proceedings
The trial in England entered the merits stage in October last year. The hearings, expected to conclude by March, will determine whether the mining company is held liable. If the verdict is condemnatory, the next phase will involve analyzing compensation claims from the plaintiffs, including those affected, municipalities, and other parties involved. However, the duration of this phase remains uncertain.
