BHP Billiton pays $250m over Samarco dam failure and sees share price fall

Here’s why

BHP Billiton approves $250m payout, as the Brazilian mine Samarco burst killing 19 in November 2015, the dam was jointly owned by BHP.

BHP has confirmed on Friday, that $250 has been approved and $174m will fund Renova Foundation and $76m will be available, “to carry out remediation and stablisation work and to support Samarco’s operations.”

Funds will be made available on a draw down, type facility along with various milestones having been met.

The monies will be made available to Samarco and operations will re-start, BHP said this, “is subject to obtaining separate regulatory approvals and will occur only if safe, economically viable and has the support of the community.”

They added: “Resuming operations would also require government approvals, the granting of licenses by state authorities and the restructure of Samarco’s debt.”

“Accordingly, operations at Samarco are unlikely to restart in 2017.”

 

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