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Samarco, Vale and BHP Billiton signed today agreement with the federal governments of Minas Gerais and Espírito Santo for the social, environmental and economic recovery of the regions affected by the burst of the Fundão dam in November last year.

The agreement signed today foresees the creation of a foundation that will be responsible for implementing about 40 programs into two main work fronts, being one socio-economic and the other socio-environmental. The document focuses on the emergency actions that have been adopted by Samarco since November and proposes new projects.

“This day is a milestone for everyone involved, since an agreement is always better than a legal dispute. It will accelerate the measures of remediation of the environment and the compensation of those affected, complementing all actions initiated by Samarco from the first moment,” said Murilo Ferreira CEO of Vale.

Samarco will transfer R$ 4.4 billion to the Foundation, in the first three years, to fund the projects. In the following years, the company’s contribution will be sufficient for the execution of the plans that will be approved.
Moreover, R$ 240 million will be applied per year for compensatory actions in the next 15 years.

By the end of 2018, another R$ 500 million will be made available by the company for projects of sanitation, which will be performed by the City Halls impacted.

The CEO of BHP Billiton, Andrew Mackenzie, says “Our hearts are with those who lost loved ones in this tragedy. We will never be able to truly compensate them for their losses. This agreement demonstrates that we are truly committed to fully repair the damage and contribute to a lasting improvement of the Doce River.”

“It is critically important for the companies and all arms of government to work together, to ensure this work is done effectively and that the communities are involved in the decision making. This agreement provides the basis for this to happen,” added Mackenzie.

The result of a broad discussion that, that besides involving the companies, the Federal and State governments of Minas Gerais and Espirito Santo and the civil society, the agreement reaffirms the Samarco’s commitment with the recovery of affected areas.

In environmental matters, the intention is for the situation to return to pre-incident conditions. When there are no technical possibilities for such recovery, compensatory measures will be adopted.

The agreement offers clear commitments, sets deadlines for the submission and execution of projects and applies the rules of transparency and accountability of the activities. All projects will be accompanied by the affected populations, there will be external audits and an ombudsman will be created to assist the citizens.

“We understand that we are responsible for the enormous task expressed in the agreement and we will not spare efforts to comply with our obligations. “Samarco has a strong commitment with the people and environment affected, and will fully support the Foundation and the implementation of programs at all work fronts, as foreseen in the document signed today,” said Roberto Carvalho, CEO of Samarco.

The Foundation should be established within 120 days. During this period, Samarco will continue applying all emergency actions for the social and environmental recovery that is underway.

– Long-term agreement ensures the environmental recovery and resumption of economic activities in the region affected by the burst of the Fundão dam;
– It gives voice to the communities and establishes programs based on scientific studies;
– Business law foundation, with a strong governance criteria, is being created to execute about 40 different programs;
– Samarco will transfer R$ 4.4 billion to the Foundation in the first three years;
– The compensatory actions will have R$ 240 million per year for the next 15 years, and this amount is part of the R$ 4.4 billion;
– A fund of R$ 500 million will finance sanitation projects in affected cities;
– Negotiations foresee, among other measures, the reconstruction of Bento Rodrigues, Paracatu de Baixo and Gesteira at a location defined jointly with the communities;
– Auditing and transparency commitments ensure that the public knows where investments are applied and the results generated;
– BHP Billiton and Vale will be responsible for funding the Foundation if Samarco fails to comply with its obligations in the agreement.