Samarco Mineracao SA, the mining company responsible for Brazil’s fatal dam burst earlier this month, has agreed to pay $262 million in compensation, public prosecutors said Monday. The incident, which occurred in the southern Minas Gerais state, killed over a dozen people and left several missing.
Samarco, jointly owned by Brazil’s Vale SA and Australia’s BHP Billiton Ltd., signed a “preliminary commitment” to “guarantee funding for a range of emergency measures including prevention, mitigation, remediation and compensation for environmental and social effects of the incident,” BHP said in a statement.
The dam burst at Samarco’s mining site in the city of Mariana sent thick red mud rolling down the hilly area. Lorries, cars and houses were trapped in the mining waste and the burst led to considerable damage of environment. The cause of the accident was not known.
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