28 Nov 2015

Brazil to sue over burst dam

9:47 pm on 28 November 2015

Brazil's federal and state governments plan to sue the owners of the Samarco iron ore miner for $US5.24 billion ($NZ8.02b) in damages caused by the burst of a tailings dam, Environment Minister Izabella Teixeira said.

An aerial view of the Doce River which was flooded with toxic lama after a dam burst.

An aerial view of the Doce River which was flooded with toxic lama after a dam burst. Photo: AFP/ ESPIRITO SANTO STATE PRESS OFFICE / FRED LOUREIRO

Samarco is a joint venture between the world's largest mining company BHP Billiton Ltd and the biggest iron ore miner Vale SA.

The dam burst earlier this month unleashed 60 million cubic meters of mud and mine waste that devastated a village, killed at least 13 people and polluted a major river valley.

The suit will be filed on Monday, Ms Teixeira said. The proceeds will be put in a fund and used for environmental cleanup in the Rio Doce valley over 10 years, Attorney General Luís Inácio Adams said.

Water from the dams, at the Germano mine, flooded a large area in the village of Bento with toxic waste.

Water from the dams, at the Germano mine, flooded a large area in the village of Bento with toxic waste. Photo: AFP

Samarco has already been fined $US65 million by Brazil's environmental agency Ibama for the disaster, which covered the flood plain in mud for 80 kilometres as well as polluting the river. Fish died and drinking water supplies for a quarter of a million people had to be closed off.

Ibama is planning additional fines against Samarco on top of the $US5.2b in damages and clean-up charges the government is seeking, Mr Adams said, but he did not specify an amount.

The dense orange sediment in the river reached the ocean on the weekend, hurting local tourist businesses.

Two dams of an iron mine belonging to Samarco) broke in the city of Mariana, Brazil.

Two dams of an iron mine belonging to Samarco) broke in the city of Mariana, Brazil. Photo: AFP

The United Nations' human rights agency said on Wednesday (local time) that the mud from the dam burst was toxic, contradicting claims by Samarco and mine co-owner BHP Billiton that the water and mineral waste posed no risk to human health.

Ms Teixeira announced the lawsuit after the close of the Sao Paulo stock market. The share price of co-owner Vale fell 5.78 percent on Friday (local time).

Vale and BHP announced earlier that they would create a fund with Samarco to help in the clean-up of the Rio Doce and its tributaries affected by the disaster. They did not detail the size of the recovery fund.

-Reuters

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