Vale-BHP Venture Forced to Pay $5 Billion To Settle Government Lawsuit

According to Reuters, Samarco Mineracao - a joint venture between VAle SA (ADR) VALE and BHP Billiton Limited (ADR) BHP - will pay at least 20 billion reais ($5 billion) over 15 years to the government as part of a settlement.

Samarco Mineracao's settlement with the government follows a deadly dam spill at a mine in November.

Reuters, citing "a government source," reported that the companies will pay 4.4 billion reals in the three years immediately following the agreement that is expected to be finalized on Wensday with the remainder to be paid over the following years.

Nineteen people died in the dam spill, which was considered to be one of Brazil's worst environmental disaster.

Shares of Vale were trading higher by nearly 2 percent ahead of Wednesday's market open while shares of BHP were higher by more than 2.5 percent.