BHP, Vale near $30B settlement in Brazil tailings dam disaster

Miners Vale (NYSE:VALE) and BHP (BHP) are moving closer to finalizing a deal with Brazilian authorities to provide a settlement worth ~$30B, with an agreement set to be signed on October 25, according to multiple reports Friday, for a 2015 catastrophic dam failure that is considered one of Brazil’s worst-ever environmental disasters.

In separate statements and securities filings, Vale, BHP and their Samarco joint venture said the version of the agreement currently being discussed would include total compensation of 170B reais (~$29.9B), with 100B reais to be paid through 20 years directly to public authorities.

The total amount also includes 32B reais to be spent by the companies on remediation and compensation measures, and another 38B reais that are already disbursed, according to the companies.

Meanwhile, BHP (BHP) is set to face a trial in a parallel U.K. class action lawsuit involving as many as 620K people affected by the Samarco mine disaster.

The approach of the trial has increased the rush by the mining companies to resolve the case in Brazil, as a deal may have a bearing on the size and scope of the U.K. litigation.