IRON ORE – BRAZIL

BHP class action down to one

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Original article by Ben Butler
The Australian – Page: 15 : 19-Dec-18

The Federal Court has ruled that Phi Finney McDonald’s class action against BHP over the Samarco tailings dam disaster in Brazil can proceed. Rival law firms Maurice Blackburn and Johnson Winter & Slattery had also proposed class actions against the resources group, but Justice Mark Moshinsky expressed a preference for Phi Finney McDonald’s funding model. He also noted that the firm’s case was more advanced in terms of preparation.

CORPORATES
BHP GROUP LIMITED – ASX BHP, PHI FINNEY McDONALD PTY LTD, MAURICE BLACKBURN PTY LTD, FEDERAL COURT OF AUSTRALIA, VALE SA, G&E KTMC FUNDING, HARBOUR FUND IV, ROBBINS GELLER RUDMAN AND DOWD LLP, LOS ANGELES COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION

BHP faces new dam burst case

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Original article by Ben Butler, Matt Chambers
The Australian – Page: 17 & 20 : 4-Oct-18

Law firm Johnson Winter & Slattery has filed a class action against BHP Billiton on behalf of the Los Angeles County Employees Retirement Association. The US pension fund alleges that the value of its stake in BHP fell sharply after the miner’s shares were heavily sold down in the wake of the Samarco iron ore tailings dam collapse in November 2015. BHP is already subject to two Australian lawsuits over the disaster. Meanwhile, prosecutors in Brazil’s state of Minas Gerais are believed to be poised to announce the settlement of a civil claim against BHP and Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, LOS ANGELES COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION, JOHNSON WINTER AND SLATTERY, VALE SA, MAURICE BLACKBURN PTY LTD, PHI FINNEY McDONALD PTY LTD, FEDERAL COURT OF AUSTRALIA, SAMARCO MINERACAO SA

Lawyers sniff a settlement out of BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 10-Aug-18

BHP Billiton has agreed to settle a class action launched by US shareholders over losses arising from the Samarco iron ore tailings dam collapse in Brazil. BHP has offered to pay $US50m ($67.2m) in compensation to settle the case, although it will not admit any liability for the disaster. Brett Spiegel of Australian law firm Phi Finney McDonald says its class action is based on similar underlying issues, adding that the US settlement has vindicated his firm’s contention that BHP had misled investors and failed to comply with disclosure requirements.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, PHI FINNEY McDONALD PTY LTD, FEDERAL COURT OF AUSTRALIA, MAURICE BLACKBURN PTY LTD, HERBERT SMITH FREEHILLS PTY LTD

More join BHP Samarco class action

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 23-Jul-18

More than 3,000 investors have agreed to participate in Phi Finney McDonald’s class action against BHP Billiton. They will seek damages for losses they incurred as a result of the Samarco iron ore tailings dam disaster in Brazil. The class action includes investors in BHP’s shares listed in Australia, the UK and South Africa. The class action will contend that BHP was aware of technical problems at Samarco and knew that there was a risk that the dam would collapse.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PHI FINNEY McDONALD PTY LTD, VALE SA, SAMARCO MINERACAO SA, FEDERAL COURT OF AUSTRALIA, BOART LONGYEAR LIMITED – ASX BLY, TIMBERWEST FOREST LIMITED

Rio, Vale boost output and market share

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 16 : 18-Jul-18

Rio Tinto’s iron ore shipments from the Pilbara totalled 168.8 million tonnes in the first half of 2018, which is 9.4 per cent higher than previously. Rio Tinto has advised that its export volumes will be similar in the second half, and shipments for the calendar year are expected to be at the higher end of its guidance of between 330 million and 340 million tonnes. Brazilian rival Vale has reported production of 96.8 million tonnes and sales of 86.5 million tonnes of iron ore for the June quarter. It will increase production by 18 per cent in the second half, and it will target full-year output of around 390 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, VALE SA, BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, CLEVELAND-CLIFFS INCORPORATED, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG

BHP in $7bn deal on Brazil disaster

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Original article by Matt Chambers
The Australian – Page: 22 : 27-Jun-18

BHP Billiton has agreed to an uncapped settlement with Brazilian prosecutors regarding a damages claim arising from the tailings dam collapse at the Samarco iron ore mine in 2015. The agreement has fully settled the initial damages claim of 20 billion Brazilian real against BHP and joint venture partner Vale, while a civil claim for 155 billion real has been suspended for two years. Tyler Broda of RBC Capital Markets says the settlement should eventually allow production at Samarco to resume.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, RBC CAPITAL MARKETS, BP PLC

BHP expects $79b in Brazil claims to fall

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 22-Sep-16

The 2015-16 annual report of BHP Billiton shows that the five biggest legal claims arising from the Samarco tailings dam disaster in Brazil total 194.5 billion real ($A79.04bn). Project operator Samarco is the subject of more than 23,000 claims for damages and compensation, and joint venture partners BHP and Vale will be liable for any payouts that cannot be financed by Samarco itself. BHP anticipates that the final cost of compensation payouts will be much lower than the value of the claims that have been received to date.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA

How the Samarco disaster unfolded

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Original article by Mark Ludlow
The Australian Financial Review – Page: 36 : 31-Aug-16

The collapse of the Fundao tailings dam at the Samarco mine in Brazil has been found to be caused by a series of events related to structural problems. The accident occurred on 15 November 2015. Its causes were analysed by consultants Cleary Gottlieb Steen & Hamilton. The study was commissioned by Samarco Mineraco’s joint owners BHP Billiton and Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, CLEARY GOTTLIEB STEEN AND HAMILTON LLC

Vale vows not to flood the iron markets

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 8-Aug-16

The annual capacity of Vale’s "S11D" iron ore project will be 90 million tonnes, which has prompted some analysts to forecast an iron ore oversupply in 2017. However, Vale’s Peter Poppinga has downplayed concerns about an oversupply, arguing that the Brazilian group will ramp up exports over several years, with its mine capacity to increase at a faster pace than its rail capacity. He also stresses that not all of the increased production will be exported to Asia.

CORPORATES
VALE SA, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, WORLEYPARSONS LIMITED – ASX WOR

Samarco dam disaster swells BHP’s exceptional items bill

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 29-Jul-16

BHP Billiton has advised that its 2015-16 financial accounts will include an additional $US1bn worth of impairment charges associated with the Samarco iron ore tailings dam disaster in Brazil. Exceptional items in the resources giant’s full-year accounts are expected to top $US7b ($A9.4bn). BHP’s Samarco joint venture partner, Vale, has also revealed significant impairment charges as a result of the disaster. Resumption of production at Samarco is now unlikely to begin until 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, SUPREME COURT OF JUSTICE (BRAZIL)