The owners of the Brazil dam that was the main cause of the mudslide have accepted that they will pay 4.4bn as a way of compensating for the damages. The mudslide happened after the mine breached a dam.
The manner of payment in the Samarco deal has also been agreed upon. Samarco will make a payment of 2bn reais in 2016. 1.2bn reais will then be paid in 2017 and 2018 each.
The govt of Brazil earlier on wanted to be paid 20bn reais so as to deal with what it has referred as the worst environmental disaster in the country.
Two Samarco dams ruptured in November, leading to the occurrence of a deadly mudslide.
The town of Mariana that is located in Southern Brazil was then destroyed by the mudslide and in the process 19 people were killed.
The owners of the company- BHP Billiton and Vale- said that this agreement was an indication of how committed they are to repair the damage as well as contribute to long term improvement of Rio Doce.
Still under the agreement, Australian BPH Billiton and Brazilian Vale will each individually make the payment if Samarco becomes unable to pay for the damages caused by the deadly Brazil mudslide.
There are two categories for the money- compensation for communities and environmental restoration.
A police investigation that was done in February found out that Samarco executive was negligent. The mine’s 6 executives, the company’s president also included, were charged with homicide.