MINING CORPORATIONS – BRAZIL

BHP begins payout plan for Brazil mine victims

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Original article by Barry FitzGerald
The Australian – Page: 16 : 5-Jan-16

Samarco has commenced paying compensation to the families of victims of the iron ore tailings dam disaster in Brazil, and families that have had to be relocated. Samarco, which is jointly owned by BHP Billiton and Vale, has accepted legal liability for the disaster and the resulting compensation claims. However, a Brazilian court has ruled that BHP and Vale must also bear responsibility for environmental remediation.

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

BHP bolsters Brazil team as probe into ‘deadly’ dam looms

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Original article by Barry FitzGerald
The Australian – Page: 18 : 23-Dec-15

BHP Billiton has appointed US law firm Cleary Gottlieb Steen & Hamilton to examine the causes of the tailings dam failure at its Samarco iron ore joint venture in Brazil. Meanwhile, Flavio Bulcao has been appointed as BHP’s country ­director for Brazil, while chief commercial officer Dean Dalla Valle will lead the resources group’s response to the disaster. BHP recently disputed a United Nations report on the toxicity of the tailings, which have polluted the River Doce.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, UNITED NATIONS, CLEARY GOTTLIEB STEEN AND HAMILTON LLC, BRAZIL. MINISTRY OF HEALTH

Vale to fight decision to freeze assets

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Original article by Barry FitzGerald
The Australian – Page: 14 : 22-Dec-15

Brazilian miner Vale intends to mount a legal challenge to a court’s decision to freeze its Samarco iron ore assets. The Samarco project is jointly owned by Vale and BHP Billiton. A Brazilian judge has ruled that they may be liable for the tailings dam disaster, as project operator Samarco Mineracao lacks sufficient funds to finance environmental remediation and compensate victims of the tragedy. The Samarco stake is BHP’s sole asset in Brazil.

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

Vale target in US suit over dam disaster

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Original article by John Kehoe
The Australian Financial Review – Page: 11 & 16 : 10-Dec-15

The American depository receipts of Brazilian miner Vale have shed 32.5 per cent since the tailings dam failure at the Samarco iron ore joint venture. Investors who bought Vale’s shares between 21 March and 30 November 2015 will be eligible to participate in a class action launched by Bronstein, Gewirtz & Grossman. Amongst other things, the law firm claims that Vale made false statements regarding the project. Shares in Samarco’s 50 per cent owner BHP Billiton have also been heavily sold down. It is not named in the class action.

CORPORATES
VALE SA, SAMARCO MINERACAO SA, BHP BILLITON LIMITED – ASX BHP, BRONSTEIN, GEWIRTZ AND GROSSMAN, NEW YORK STOCK EXCHANGE, DISTRICT COURT OF UNITED STATES. SOUTHERN DISTRICT OF NEW YORK, BRAZIL. ENVIRONMENT MINISTRY, UNITED NATIONS, GOLDBERG AND PARTNERS INCORPORATED

Burst Brazilian dam likely to stay shut for years; owners face fines

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Original article by Amanda Saunders, Matthew Stevens
The Australian Financial Review – Page: 17 : 10-Nov-15

Deutsche Bank’s Paul Young says BHP Billiton may have to reconsider its progressive dividend policy in the wake of a fatal incident at its Samarco iron ore joint venture in Brazil. Deutsche estimates that BHP and joint venture partner Vale could face costs of at least $US1bn ($A1.4bn) arising from the failure of a tailings dam at the mine in the state of Minas Gerais. Young says the Samarco project is unlikely to resume production before fiscal 2019, and it could potentially be closed permanently.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, DEUTSCHE BANK AG, SAMARCO MINERACAO SA

Vale China deal puts Rio, BHP on notice

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Original article by Angus Grigg
The Australian Financial Review – Page: 23 : 17-Feb-15

China will provide the 400,000-tonne Valemax-class iron ore transport ships with access to its ports, overturning a ban that has been in place for three years. China Metallurgical Industry Planning Association chairman Li Xingchuang says the move is likely to boost the market share of Brazil’s Vale. Macquarie Group’s Graeme Train adds that Vale could also overtake BHP Billiton and Rio Tinto as the world’s lowest-cost producer of iron ore

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, MACQUARIE GROUP LIMITED – ASX MQG, CHINA. MINISTRY OF TRANSPORTATION AND COMMUNICATIONS, CHINA METALLURGICAL INDUSTRY PLANNING ASSOCIATION, CHINA OCEAN SHIPPING COMPANY, CMES