Market Overview

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

Share:

According to Reuters, Samarco Mineracao - a joint venture between VAle SA (ADR) (NYSE: VALE) and BHP Billiton Limited (ADR) (NYSE: 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.

Posted-In: BHP Billiton Reuters Samarco Mineracao valeNews Rumors

 

Related Articles (BHP + VALE)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com