Brazil's federal government and the state of Espirito Santo have reportedly turned down a $25.03bn settlement proposal from mining giants Vale and BHP for the 2015 Mariana tailings dam collapse.

The offer, which included $9.2bn already disbursed, was deemed insufficient and laden with "inadmissible conditions" by the office of Brazil's solicitor general, reported Reuters.

The dam collapse at the Samarco iron ore mine, a joint venture between Vale and BHP, unleashed a deluge of mud and mining waste, claiming 19 lives, displacing hundreds, and causing extensive environmental damage to the Doce River in Minas Gerais state.

Despite the proposal's increase in funds allocated to federal and state governments, it suggested a significant reduction in the companies' previously agreed obligations.

Notably, the plan implied a drastic cutback in the removal of mining tailings from the Doce River, with the government suggesting it bordered on a scenario of no removal at all.

Silveira was quoted by in Bloomberg News as saying in an interview in Rome: “I cannot fail to express my outrage at how brazen it is for Vale and BHP to present a settlement proposal for the humanitarian tragedy of Mariana that’s less adequate than the previous one. We’ll reject it.”

While the federal government and Espirito Santo have expressed firm opposition, the Minas Gerais government has adopted a different stance.

Minas Gerais Secretary for Planning and Management Luisa Barreto was cited by Reuters as saying that the state intends to continue negotiations over the current proposal.

In response to the rejection, BHP reaffirmed its commitment to fair reparation and compensation measures while Vale emphasised its dedication to reaching a fair and comprehensive repair agreement.

Samarco also communicated its openness to dialogue and its responsibility towards concluding the agreement discussions.