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Brazil court freezes $78 mln in Samarco accounts after disaster
“If federal fines are applicable, we will apply them”, environment minister Izanbella Teixeira said.
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Brazilian lawmakers are pushing for a new mining code with stricter regulations to prevent future accidents like the one at Germano, while environmental activists, journalist and local officials are criticizing the response of the companies behind Samarco.
The company on Friday said mine tailings-a mix of water and iron-ore waste-now extended 440 kilometers (273 miles) downstream through remote mountain valleys from the mine site in Brazil’s Minas Gerais state.
On Wednesday, Ms Rousseff, a native of Minas Gerais, spoke with the chief executives of BHP and Vale, who held a press conference earlier that day to apologise for the disaster and promised to meet their obligations as the mine’s owners.
They said BHP and Vale would create a joint fund for the recovery costs, but added that it was too soon to calculate how much would be needed.
As despair turns to anger over a deadly dam burst at a Brazilian mine, lawmakers pushed on Tuesday for tougher regulations in a new mining code and iron ore giant Vale SA came under pressure to help mourning families and contain the environmental impact. Governador Valadares, a city of 300,000 residents in Minas Gerais, is now having its water trucked in due to the pollution. Four people previously unaccounted for have been found and 19 people are still missing.
The dam burst last week caused a massive mudslide killing six people (Read SafetyCulture report here).
The government action followed an aerial visit by the country’s president Dilma Rousseff of the affected area spanning two states.
This was after BHP chief executive officer, Andrew Mackenzie saw first-hand the devastation brought about by the incident.
Neither the companies nor Brazilian officials have determined a cause for the ruptures, though Samarco acknowledged that workers, 13 of whom were washed away by the torrent, were engaged in an expansion of the dam when it burst.
BHP Billiton and Vale, whose CEOs are on site, have pledged to support Samarco in establishing an emergency fund for community support and rebuilding works.
The insurance industry is also coming to grips with the disaster, which could trigger up to $600 million in claims, according to a source with direct knowledge of the matter.
Meanwhile, more locals were evacuated yesterday on concerns over the stability of the one remaining undamaged tailings dam at Samarco.
Chairman Jac Nasser last month pointed to the company’s balance sheet strength as providing BHP with the confidence to pursue its policy of raising returns to shareholders, the producer said Friday in an e-mailed response to questions.
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On November 10 public prosecutors announced that negligence most likely played a roll in the disaster, resulting in death, injury and environmental destruction, devastating homes, businesses and infrastructure in the process.