Questor income portfolio: BHP’s income appeal is far greater than many investors may realise
... in the telegraph |
 BHP, Vale, and Samarco reach $32bn settlement over 2015 Fundão dam disaster
The settlement includes $7.9bn already spent on remediation and compensation, $18bn to be paid in instalments over 20 years to Brazilian authorities and communities, and $5.8bn in additional obligations to be fulfilled by Samarco
Refna Tharayil
NSENERGY
28th Oct 2024
Brazil and mining companies reach $32bn settlement over 2015 Fundão dam disaster.
The Brazilian federal government, together with the States of Minas Gerais and Espirito Santo, has secured a $31.7bn settlement with mining company Samarco Mineração over the 2015 Fundão dam collapse in Brazil.
Samarco is a 50-50 joint venture (JV) between BHP Billiton Brasil and Vale. The JV owned and operated the Fundão tailings dam at the Germano iron ore mine of the Samarco Mariana mining complex.
In its 2024 annual report, BHP said that the companies have been in discussions with Brazilian authorities since early 2021 to reach a comprehensive resolution on the existing framework agreement obligations, the Federal Public Prosecution Office’s civil claim, and additional claims.
These negotiations were overseen by the Brazilian Federal Court of the 6th Region and the National Court of Justice, with support from a court-appointed mediator and participation from the public prosecutors and defenders.
BHP CEO Mike Henry said: “Today’s signing of a comprehensive agreement with the Brazilian government and public authorities is an important reflection of that commitment.
“It delivers expanded and additional programs for the environment and for the people, including designated funding for the health system, economic recovery, improved infrastructure and extensive compensation and income support measures, including for farmers, fisher people and Indigenous and Traditional communities.”
The settlement includes the $7.9bn already spent on remediation and compensation as of 30 September 2024, along with $18bn to be paid in instalments over 20 years to Brazilian authorities, municipalities, Indigenous peoples, and traditional communities.
Further obligations valued at $5.8bn will be implemented by Samarco under the terms of the agreement.
BHP Brasil’s estimated financial outflow under this settlement aligns with its FY2024 provision of $6.5bn for the dam failure.
Key terms of the agreement allocate resources to critical social and environmental programmes. The compensation for indigenous and traditional communities will total $1.4bn.
Samarco will serve as the primary obligor under the terms of the settlement, with BHP Brasil and Vale each bearing secondary liability for any unmet obligations based on their ownership shares at the time of the disaster.
The settlement’s payment schedule requires an initial instalment within 30 days of court confirmation, followed by payments every six months and annually over a period of 20 years.
Obligations are expected to be completed over approximately 15 years, with $1.2bn projected for FY25, $2.6bn for FY26, and $600m for FY27.
The settlement agreement is subject to approval from the Brazilian Supreme Court. |
BHP, Vale agree to pay $30bn compensation for Brazil dam disaster
The dam collapse triggered a giant mudslide that swamped villages, rivers and rainforest, killing 19 people (Douglas Magno)
AFP
Fri, 25 October 2024 at 6:01 pm CEST 2 min read
Mining giants BHP and Vale on Friday signed a deal with Brazil's government to pay nearly $30 billion in compensation for a 2015 dam collapse that triggered the country's worst environmental disaster.
President Luiz Inacio Lula da Silva attended the signing of the deal over the collapse of a tailings dam at a mine in the southeastern town of Mariana, which triggered a giant mudslide that swamped villages, rivers and rainforest, killing 19 people.
"I hope the mining companies have learned their lesson: it would have cost them less to prevent (the disaster), much less," Lula said after a ceremony attended by representatives of Brazil's Vale and Australia's BHP, co-owners of the Brazilian company Samarco that operated the Fundao dam.
The agreement comes on the fifth day of a mega-trial in London over whether BHP was liable for the spillage of over 40 million cubic meters of highly toxic mining sludge, the equivalent of 12,000 Olympic swimming pools, on November 5, 2015.
More than 620,000 complainants, including 46 Brazilian municipalities, are seeking an estimated £36 billion ($47 million) in damages in the civil trial.
BHP denies responsibility.
BHP and Vale had already agreed in 2016 to pay 20 billion reais (about $3.5 billion at today's rate) in compensation, but the negotiations were re-opened in 2021 due to what the government called their "non-compliance" and the slow progress of Brazil's justice system in resolving the dispute.
Friday's agreement in Brazil covers their past and future obligations to assist people, communities and ecosystems affected by the disaster.
The companies agreed to pay 100 billion reais (17.5 billion dollars) to local authorities over twenty years and 32 billion reais ($5.6 billion) towards compensating and resettling the victims and repairing the harm caused to the environment.
The remaining 38 billion reais ($6.6 billion) is the amount that the companies say they have already paid in compensation.
raa/app/cb/bjt |
Bgt dome. 2025 guidance maintained. China Stimulus is cherry on top to come as and when. |
I am just departing what I was told + China said they would give a stimulus package BUT not when plus watch USA after 1630 they tend to move up (not always) ftse reacts negatively to not so good news eurozone not so much hence the DAX 96 pts up ATM |
84stewart
All the big Mining shares are down and they usually move up and down together. The reason for the falls today is reaction to the latest China stimulus package which has turned out to be a bit of a damp squib. The Miners are all very sensitive to events in and updates from China as China is such a big user of commodities.
I.e the BHP fall today is not for the reason you give. Mining shares respond particularly to events in China and not as you suggest the USA. |
Just spoke to a broker who said Bhp holders should not worry hedge funds are out to hammer GLEN for some reason possibly trying to short it. |
This was supposed to be to open up in positive territory but as usual no guts ,so much negativity in the footsie DOW IS glad when 1630 comes when ftse stops trading and they get on with positive trading |
Well I guessed these would drop but not by as much which is great,bought in more to take advantage of this situation ,China did not disappoint just held off making more stimulas available not just my option 2 weeks time could bring the news people are waiting for ,got more shares £1.22 cheaper than yesterday win win. |
Saw on one the boards iron ore on the rise today plus two broker buys ,but what notice do MMs take ,depends what side of the bed they fall out ,caution should be applied today imho. |
Just a thought 6 months have passed or nearly so Bhp can go for Aal again,will have to pay a higher premium imho bad move they only have copper which Bhp want and will be left with the Dross not my words a broker who spoke to informed me , £36bln + is his take too expensive |
At the moment all miners apart from BHP are in the black this share is down is it because MMs don’t class this as British although it is the biggest by some way,they may wake up latter ,US payroll’s expectations may be some reason but not all. |
2287.00 - 2290.00 (GBX) at 08:12:03
on Market (LSE) |
2266p today . Way beyond my expectation |
Will this continue its journey north or south as China news fisal out..2100p to 2200p. Take your pick |
China whispers and the Miners jump. Hope it wasn't a Chinese whisper! |
Seemingly copper and iron ore rising miners in Aussi shares rise between 1.9%& 2.9% BHP amongst them China starting to move with restocking underway. |
Dividend 74 US cents per ordinary share
British pence
Exchange rate 1.307900
Dividend per ordinary share in local currency 56.579249
NOT LONG NOW
anhar
16 Sep '24 - 10:15 - 1840 of 1849
0 2 1
Sterling value of US74¢ final divi announced: 56.579249p
payable 03 Oct. |
I can’t quite see the reasoning in Redeeming €3/4 Bln in notes so early saves interest down the line and looks like they can afford it I suppose,or do they have a surplus of cash. |
Largest mining co listed. They will find money . I am more inclined towards GLEN if they bid again |
Have they got that amount of spare cash most won’t accept a 50/50 split. |
Bhp is still looking for the copper mines and miners to bid. |
2100p insight faster than I thought. Wow |
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