Wrap Text
Samarco Update – Governance Agreement
BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Release Time IMMEDIATE
Date 25 June 2018
Release Number 08/18
Samarco Update – Governance Agreement
On 2 March 2016, Samarco Mineração S.A. (Samarco), Vale S.A. (Vale), BHP Billiton
Brasil Ltda (BHP Brasil) (the Companies), and the Federal Government of Brazil, the
Brazilian states of Espirito Santo and Minas Gerais and other public authorities entered
into a Framework Agreement that provides for the settlement of the BRL20 billion Civil
Claim. Under this Agreement the Companies agreed to establish a fund for clean-up
costs and remediation and for compensation of impacts relating to the Fundão tailings
dam failure.
The Companies, the other parties to the Framework Agreement, the Public
Prosecutors Office and the Public Defense Office have agreed an arrangement which
settles the BRL20 billion Civil Claim, enhances community participation in decisions
related to the remediation and compensation programs under the Framework
Agreement (Programs), and establishes a process to renegotiate those Programs
over two years and to progress settlement of the BRL155 billion Civil Claim
(Governance Agreement).
The Governance Agreement is conditional on the Federal Government of Brazil signing
the agreement, and is subject to ratification by the 12th Federal Court of Minas Gerais.
Legal Claims
Under the Governance Agreement, the parties have agreed to file a petition with the
12th Federal Court to dismiss the BRL20 billion Civil Claim, and also agreed on a
process to dismiss certain other public civil actions which cover the same claims as
the BRL155 billion Civil Claim.
The Governance Agreement also provides for the suspension of the BRL155 billion
Civil Claim for a period of two years following ratification of the Governance Agreement.
Renegotiation process
During the two year period, the parties will work together to design a single process for
the renegotiation of the Programs and progress settlement of the BRL155 billion Civil
Claim. The renegotiation process will take into account the principles and rules
established under the Framework Agreement, and will be aimed at improvement of the
Programs, with the involvement of the affected communities.
The renegotiation of the Programs will be based on certain agreed principles, such as
full reparation consistent with Brazilian law, the requirement for a technical basis for
any proposed changes, the findings of the socio-economic and socio-environmental
experts appointed by both the Companies and the Prosecutors, and consideration of
the feedback from the Local and Regional Commissions.
During the renegotiation period and up until revisions to the Programs are agreed, the
Renova Foundation will continue to implement the Programs in accordance with the
terms of the Framework Agreement and the Governance Agreement.
Governance Arrangements
A revised governance structure, based on the Framework Agreement, has been
agreed to enhance community participation in the process.
The Inter-Federative Committee currently comprises 12 members, and the revised
structure includes four additional members, with three being appointed by affected
communities and one by the Public Defense Office. The Renova Board currently
comprises seven members, with six being appointed by the Companies and one by
the Inter-Federative Committee. Under the revised structure, two additional members
of the Renova Board will be appointed by the affected communities.
A network of Local and Regional Commissions has also been established along the
Rio Doce to secure community participation in the decision making relating to the
Programs.
Further information on BHP can be found at: bhp.com
Notes:
Samarco Mineração S.A. is jointly owned by BHP Billiton Brasil Ltda and Vale S.A. Our 50 per
cent interest is accounted for as an equity accounted investment.
Public Prosecutors Office includes the Federal, State of Minas Gerais and State of Espirito
Santo public prosecutors offices.
Public Defense Office included the Federal, State of Minas Gerais and State of Espirito Santo
public defense offices.
BRL155 billion Civil Claim
On 3 May 2016, the Federal Prosecutors commenced proceedings against Samarco, Vale and
BHP Brasil for BRL155 billion (approximately US$41.5 billion) for social, environmental and
economic compensation relating to the Samarco dam failure (BRL155 billion Civil Claim).
The claim includes the Federal Prosecutors seeking an injunction order that Samarco, Vale
and BHP Brasil deposit BRL7.7 billion (approximately US$2 billion) into a special company
account.
Sponsor: UBS South Africa (Pty) Limited
Media Relations Investor Relations
Email: media.relations@bhpbilliton.com Email: investor.relations@bhpbilliton.com
Australia and Asia Australia and Asia
Ben Pratt Andrew Gunn
Tel: +61 3 9609 3672 Mobile: +61 419 968 734 Tel: +61 3 9609 3575 Mobile: + 61 402 087 354
United Kingdom and South Africa United Kingdom and South Africa
Neil Burrows Elisa Morniroli
Tel: +44 20 7802 7484 Mobile: +44 7786 661 683 Tel: +44 20 7802 7611 Mobile: +44 7825 926 646
North America Americas
Judy Dane James Wear
Tel: +1 713 961 8283 Mobile: +1 713 299 5342 Tel: +1 713 993 3737 Mobile: +1 347 882 3011
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
LEI WZE1WSENV6JSZFK0JC28 LEI 549300C116EOWV835768
Registered in Australia Registered in England and Wales
Registered Office: Level 18, 171 Collins Street Registered Office: Nova South, 160 Victoria Street
Melbourne Victoria 3000 Australia London SW1E 5LB United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
Members of the BHP Group which is
headquartered in Australia
Follow us on social media
Date: 26/06/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
