Brazil rejects Vale, BHP settlement offer for Mariana disaster

SAO PAULO (Reuters) – Brazil and Espirito Santo state have rejected a proposal from miners Vale and BHP regarding reparations for the deadly 2015 Mariana tailings dam burst, the federal government said on Friday.

Vale, BHP and their joint venture Samarco had presented authorities earlier this week with an offer to pay a total of 127 billion reais ($25.03 billion) in reparations for the dam’s collapse, including the 37 billion reais already paid out.

However, the offer “does not represent an advance” on the companies’ previous proposal in December and contains “inadmissible conditions,” the Brazilian Solicitor General’s office said in a statement.

The collapse of the dam at the Samarco iron ore mine near the town of Mariana in Minas Gerais state in November 2015 caused a huge flow of mud and mine waste that buried a nearby village, killing 19 people, leaving hundreds homeless and polluted a large river. via Espirito Santo.

($1 = 5.0734 reais)

(Reporting by Peter Frontini; Editing by Gabriel Araujo and Jonathan Oatis)