BHP Billiton and Vale begin process to settle claims over Samarco

BHP Billiton and its partner Vale will settle a multi-billion Samarco dam disaster claim within the next five months after agreeing to the nuts and bolts of a deal with Brazilian prosecutors.

The two firms signed a preliminary agreement to help move the claim through the Brazilian courts. A settlement should be reached by 30 June.

BHP, the world’s biggest miner, and Brazilian firm Vale face a $47.5 billion (£38.6 billion) claim from prosecutors over the disaster, which claimed at least 19 lives and spewed toxic waste into local villages in 2015.

The latest plan comprises a $675 million payment for the framework agreement — mostly involving the handover of insurance bonds — and a further $60 million to each of four regional authorities hit by the catastrophe.

The Samarco disaster has been a source of controversy for BHP, with protestors targeting its annual meeting last year demanding higher compensation for the victims.