Brazil has secured a $45 billion deal to address the 2015 Mariana dam disaster.

The agreement, reached with BHP, Vale, and Samarco, seeks to remedy the extensive damage caused by the collapse of the iron ore dam near Mariana in south-eastern Brazil. 

The disaster, among the worst environmental events in Brazil's history, killed 19 people, displaced hundreds, and polluted the entire length of the Doce River.

President Luiz Inácio Lula da Silva witnessed the signing in Brasília, confirming the first instalment of 5 billion reais (about $1.3 billion) is due within 30 days. 

The deal allocates 132 billion reais, including 100 billion reais as “new resources” for public authorities over 20 years, and 32 billion reais for direct compensation and ongoing remediation efforts by the companies involved. 

This adds to 38 billion reais the companies claim to have already spent.

Jorge Messias, Brazil's Solicitor General, highlighted the importance of the funds, saying; “These resources will allow us to provide justice in reparation to the families directly affected and their impact will be felt over several areas, not only in the recovery of the environment but in the resumption of economic activities, health, and infrastructure”. 

Payments will continue until 2043, decreasing from 7 billion reais in 2026 to 4.41 billion reais in the final instalment.

The agreement could resolve over 100 lawsuits in Brazil and potentially limit further international legal claims. 

BHP, however, continues to contest liability in a separate £36 billion ($70 billion) lawsuit in London’s High Court, arguing that the case duplicates legal efforts in Brazil. 

Vale has increased its provisions for Samarco-related expenses to $7.1 billion, up by nearly $1.5 billion.

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