OREANDA-NEWS. Samarco, Vale and BHP Billiton signed today agreement with the federal governments of Minas Gerais and Espírito Santo and other entities to accelerate the coordinated implementation of measures for the social, environmental and economic recovery of the regions affected by the burst of the Fundão dam.

The agreement signed today foresees the creation of a business law foundation that will be responsible for implementing approximately 40 programs into two main work fronts, being one socio-economic and the other socio-environmental. The document focuses on the emergency actions that have been adopted by Samarco since November and proposes new projects.
 
"This day is a milestone for everyone involved, since an agreement is always better than a legal dispute. It will accelerate the measures of remediation of the environment and the compensation of those affected, complementing all actions initiated by Samarco from the first moment," said Murilo Ferreira the CEO of Vale.
 
Samarco will transfer R$ 4.4 billion to the Foundation, in the first three years, to fund the projects. In 2019, the annual contributions for the Foundation will be defined in accordance with the prevision of the annual execution of projects. In 2019, 2020 and 2021, the annual amounts for these contributions will be between BRL800 million and BRL1.6 billion. Moreover, in the next 15 years, starting in 2016, BRL240 million per year will be applied in compensatory measures. These annual amounts for compensatory measures are already included in the total amount of the first six months mentioned above.
 
As a compensatory measure, another BRL500 million will also be made available by the company for projects of basic sanitation, which will be performed until 2018 by the City Halls impacted. 
 
The CEO of BHP Billiton, Andrew Mackenzie, says "Our hearts are with those who lost loved ones in this tragedy. We will never be able to truly compensate them for their losses. This agreement demonstrates that we are truly committed to fully remedy the damage and contribute to a lasting improvement of the Doce River.”
 
“It is critically important for the companies and all arms of government to work together, to ensure this work is done effectively and that the communities are involved in the decision making.  This agreement provides the foundation for this to happen," added Mackenzie.
 
As the result of a broad discussion that, that besides involving the companies, the Federal and State governments of Minas Gerais and Espirito Santo and entities of the civil society, the agreement reaffirms Samarco's commitment with the recovery of affected areas.
 
In environmental matters, the intention is for the situation to return to the conditions prior to the accident. Compensatory measures will be adopted if there are no technical possibilities for such recovery.
The agreement offers clear commitments, sets deadlines for the submission and execution of projects and applies the rules of transparency and accountability of the activities. The affected populations will follow all projects, there will be external audits and an ombudsman will be created to assist the citizens.
 
"We understand that we are responsible for the enormous task expressed in the agreement and we will not spare efforts to comply with our obligations. Samarco has a strong commitment with the people and environment affected, and will fully support the Foundation and the implementation of programs at all work fronts, as foreseen in the document signed today," affirms Roberto Carvalho, CEO of Samarco. 
 
The Foundation must be established within 120 days. During this period, Samarco will continue applying all emergency actions for the social and environmental recovery that are underway. 
 
Social-environmental highlights
  • Compensatory resources in the amount of BRL500 million made available for certain municipalities affected to use in the elaboration and execution of the plans for the collection and treatment of sewage systems and landfills.
  • Recovery of Permanent Protection Areas (PPAs) of the Doce River and tributaries through the reforestation of 10 thousand hectares and the natural regeneration of 30 thousand hectares in ten years as compensatory measures in the amount of BRL1.1 billion. 
  • Compensatory recovery of 5 thousand springs defined by the River Basins Committee of the Doce River. 
Socio-economic highlights
  • Reconstruction of the locations affected, such as Bento Rodrigues, Paracatu de Baixo (Mariana) and Gesteira (Barra Longa), ensuring their participation though discussions with the communities affected, to define the measures for recovery or resettlement. 
  • Execution of a reimbursement and compensation program through a coordinated negotiation, to recover and compensate the people affected.
  • Creation of permanent channels of communication and discussion with the community, as well as schedules to present the progress and results of the programs that will be implemented. 
  • Implementation and maintenance of measures to support indigenous populations affected. 
  • Recovery of cultural material and preservation of the cultural heritage affected.  
  • Implementation of actions for the recovery of economic and productive activities affected, such as cattle farming, fishing, services and commerce.
  • Health, social protection and education programs are foreseen to reestablish public services affected and the follow up on individuals and families affected.