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BBL BHP Group Plc

64.18
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Share Name Share Symbol Market Type
BHP Group Plc NYSE:BBL NYSE Common Stock
  Price Change % Change Share Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 64.18 0 01:00:00

Brazil Judge to Hear Charges in Samarco Dam Collapse

18/11/2016 7:31pm

Dow Jones News


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By Benjamin Parkin 

RIO DE JANEIRO -- A federal judge has ordered 21 people linked to the world's largest mining companies to answer to homicide charges in connection with last year's deadly mine disaster in southeastern Brazil.

Prosecutors last month filed charges against the suspects, who include current and former executives of mining giants Vale SA and BHP Billiton Ltd., and their joint venture Samarco Mineração SA.

Under Brazil's legal system, a judge must accept the charges in order for the accused to officially become defendants. They now have 30 days to present a defense, at which point they will likely stand trial.

Federal judge Jacques de Queiroz Ferreira also indicted the companies for many environmental crimes, as well as inflicting grave bodily harm and causing a flood.

His decision was made Wednesday, but only became public on Friday.

Both Vale and BHP said they "repudiate" the charges. BHP said it would "fully support the defense of each of the individuals indicted."

Samarco didn't immediately respond to requests for comment, but said in October that it rejects the charges.

"Safety was always a priority," Samarco said in a statement.

Friday's decision is the latest step in a legal battle that has unfolded in the year since Samarco's Fundão tailings dam at an iron ore mine in located in Minas Gerais state collapsed in November 2015, unleashing a torrent of toxic sludge that killed 19 people, razed villages and polluted 400 miles of waterway.

The failure is thought to be Brazil's worst-ever environmental disaster, and one of the worst in mining history. Prosecutors contend that the companies knew of significant structural issues at the dam since as early as 2009, but allegedly ignored warning signs as they ramped up iron ore production. Prosecutors also say that Samarco's board was informed of the likely consequences were the dam to fail.

The defendants, "by not fulfilling their duties despite knowing the risks and being aware of their responsibilities, contributed to the collapse," Mr. Ferreira in the decision.

Among those charged with homicide are Vale's iron ore director Peter Poppinga and former Samarco chief executive Ricardo Vescovi, as well as eight Vale and BHP representatives at Samarco. They could face sentences of 12 to 30 years if convicted, prosecutors say.

Mr. Vescovi couldn't be reached for comment. Mr. Poppinga didn't have any comment beyond that expressed by Vale.

Samarco and its shareholders, which have agreed to fully cleaning up the damage, are also facing a 155 billion real ($45 billion) civil lawsuit filed in May.

 

(END) Dow Jones Newswires

November 18, 2016 14:16 ET (19:16 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.

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