BHP Billiton shares plummet after Brazilian government says it will take legal action seeking $5.2bn in damages after the Samarco mine disaster
Mining giant BHP Billiton is one of the FTSE 100's biggest fallers today, with shares trading down 3.39 per cent, at 778.70p, having fallen as low as 756.7p after Brazil said it would seek around $5.2bn (£3.5bn) in damages from BHP and Vale, co-owners of the Samarco mine, where 13 people were killed after a dam burst.
BHP and local company Vale both hold a 50 per cent stake in the Samarco Mineracao iron-ore mining operation in Minas Gerais, Brazil, where a dam holding back waste water burst at the beginning of November.
Today the Brazilian government announced it would begin legal proceedings against Samarco, Vale and BHP for clean-up costs and damages, requiring them to establish a joint fund of BRL20m Brazilian real (approximately $5.2bn or £3.5bn.)
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13 people were killed and six are still unaccounted for, and the emergency services are still searching for them, BHP said in a statement this morning. Operations at the Samarco mine remain suspended.
The sediment from the mine has been tested and classified as not-hazardous to humans by Brazilian standards, but as the mine waste entered the Rio Doce river system a large number of fish were killed, and the plume of sand and clay has now reached the Atlantic. The company said the assessment into the wider impact of this is ongoing.
The companies said they remained committed to the clean-up of the surrounding area and helping relocate displaced people, finding them rented accommodation instead of temporary shelters. Work has already started repairing bridges and roads.
Last week, Vale and BHP announced they were launching a voluntary, non-profit fund to support the rescue and recuperation of the Rio Doce river system. The fund will initially be sponsored by the two miners, but the aim is to seek additional financial support from other private, public and non-government organisations.
The Brazilian environment minister Izabella Teixeira has previously said: "If federal fines are applicable, we will apply them. There will be punishment, and under Brazilian law the environment has to be repaired."