Samarco and its shareholders, Vale S.A. (Vale) and BHP Billiton Brasil Ltda (BHP Brasil) entered into a preliminary agreement with the Federal Prosecutors’ Office in Brazil (Federal Prosecutors) in relation to the Samarco dam failure (Preliminary Agreement).
The Preliminary Agreement outlines the process and timeline for negotiation of a settlement of the BRL 155 billion (approximately US$48.6 billion) and BRL 20 billion (approximately US$6.3 billion) Public Civil Claims relating to the dam failure. The Preliminary Agreement also provides for the appointment of experts to advise the Federal Prosecutors in relation to the environmental and socioeconomic impact assessment, and the negotiation of the settlement of the Public Civil Claims.
The Preliminary Agreement suspends a BRL 1.2 billion (approximately US$0.4 billion) injunction order under the BRL 20 billion Public Civil Claim and requests suspension of that claim, with a decision on suspension from the 12 th Court pending. The 12th Court previously suspended the BRL 155 billion Public Civil Claim, including the BRL 7.7 billion (approximately US$2.4 billion) injunction request.
On 30 October 2017, the 12 th Court approved the extension of the date for negotiation of the settlement arrangements and an amendment to the Preliminary Agreement to agree on socioeconomic experts to advise the Federal Prosecutors, to 16 November 2017. This extension allows for the continuation of the interim security arrangements provided to the Court on 24 January 2017 and for the continued suspension of the legal proceedings and injunctions.
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