Compensation offer after dam collapse: Vale and BHP offer billions in compensation

Nearly a decade has passed since the environmental tragedy struck the small village of Bento Rodrigues in Brazil. Now, in a remarkable move towards reparation, the involved mining companies Vale and BHP have proposed a financially substantial settlement. With a total amount of an astounding 127 billion Reais, equivalent to approximately 23 billion Euros, the offered deal could signify a kind of financial peace for both the public sector and the affected communities. The breakdown of the offer stipulates that 72 billion Reais would go directly to the Brazilian central government and to the states of Minas Gerais and Espírito Santo, as well as to the immediately impacted municipalities. Vale announced in a communication with investors that an impressive amount of 37 billion Reais has already been invested in restoration measures and individual compensations. In addition, reserves amounting to 18 billion Reais are being set aside for any further claims that may arise. The details of this proposal initially came to light through a report by the newspaper 'O Globo', despite the matter's supposedly confidential nature. This prompted Vale to officially confirm the figures. In 2015, a tailings dam of an iron ore mill, known as the 'Mariana tragedy', broke and released approximately 40 million cubic meters of toxic mud into the Doce River. The incident claimed 19 lives, and thousands were suddenly without access to clean drinking water. The Samarco Mine, a joint venture between the Brazilian company Vale and the British-Australian firm BHP, became the site of an ecological disaster. Ongoing lawsuits against the responsible corporations are a direct result of the catastrophe, and the proposed settlement is part of a mediation process that is taking place under the auspices of a federal court in Brazil.