The Brazilian Government confirmed on Monday (16 September) that it was negotiating with a group of mining companies regarding a potential payment of $18bn related to a deadly dam collapse in 2015, reports say. The government stated that the agreement could also involve the companies undertaking further repair work. 

Earlier this month, Reuters reported that Brazilian mining company Vale, Australian miner BHP and their joint venture Samarco were close to finalising a deal to provide approximately 100bn reais ($18.2bn) for additional repairs. The final terms of the agreement are expected to be determined in October. 

Brazil’s Energy and Mining Minister Alexandre Silveira confirmed the news during an interview with local radio station Itatiaia, located in Minas Gerais state, where the hazardous spill occurred. 

In addition to the reparations discussed, the negotiations also encompass around 30bn reais for environmental remediation measures that the companies would carry out themselves. This includes activities such as removing toxic mining waste from a nearby river, Reuters said.  

In 2015, the dam collapse at a Samarco iron ore mine near the city of Mariana released toxic tailings, leading to 19 casualties, hundreds of displacements, destruction of forests, and pollution of the entire length of the Doce River. 

According to Silveira, the mining companies have already paid approximately 37bn reais for remediation and compensation following the dam collapse. 

The miners proposed an 82bn reais payout to authorities in new resources and an additional 21bn reais for repairs, but officials did not fully accept it.  

Vale did not specify the potential deal amount but expects to reach a deal in October. BHP and Samarco confirmed ongoing discussions and expressed confidence in reaching an agreement soon.