Page 333 - Annual Report 2020

In addition, the claim includes a number of preliminary injunction impacted community and (ii) payments related to the Preliminary
requests, seeking orders that BHP Brasil, Vale and Samarco deposit Agreement. On 2 October 2018, the parties reached an agreement
R$7.7 billion (approximately US$1.4 billion) in a special company that was ratified by the Court for the dismissal of the claim.
account and provide guarantees equivalent to R$155 billion Under this settlement, Fundação Renova has reached more than Strategic Report
(approximately US$28 billion). The injunctions also seek to prohibit 83 individual agreements with impacted families in Mariana
BHP Brasil, Vale and Samarco from distributing dividends and for the payment of damages.
selling certain assets (among other things). On 2 February 2016, the State Prosecutors’ Office in the state
This public civil claim and the R$20 billion Public Civil Claim are of Minas Gerais filed another public civil claim against BHP Brasil,
broad claims that encompass the majority of the public civil claims Vale and Samarco before the State Court in Ponte Nova claiming
filed against BHP Brasil, Samarco and Vale. For this reason, the compensation of R$7.5 billion (approximately US$1.4 billion) for
12th Federal Court has suspended other public civil claims while moral and material damages suffered by 1,350 individuals in Ponte
negotiations continue in relation to the settlement of this public Nova and collective moral damages allegedly suffered by the
civil claim. community in Ponte Nova (Ponte Nova 1). The claim also sought
Ratification of the Governance Agreement settled the $20 billion a number of preliminary injunctions, including orders to:
Public Civil Claim and suspended this public civil claim, including • freeze R$1 billion (approximately US$185 million) of cash in the Governance at BHP
the R$7.7 billion (approximately US$1.4 billion) injunction request. defendants’ bank accounts in order to secure the compensation
Despite suspension of this public civil claim being for a period of requested under the public civil claim;
two years from the date of ratification of the Governance Agreement • require the defendants to pay minimum wages and basic food
on 8 August 2018, the claim has not been resumed and the parties supplies to the families in Ponte Nova affected by the Samarco
may negotiate a further extension. dam failure;
Enforcement Proceedings • require the defendants to pay R$30,000 (approximately
US$5,500) per affected family and compensation to provide
On 7 January 2020, the 12th Federal Court of Belo Horizonte issued dignified and adequate housing for the affected families.
a decision creating 10 enforcement proceedings (Enforcement
Proceedings) linked to the R$20 billion and R$155 billion Public Civil On 5 February 2016, the Ponte Nova Court granted an injunction
Claims described above with two additional proceedings added to freeze R$475 million (approximately US$87 million) from bank Remuneration Report
in subsequent months. The 12 Enforcement Proceedings seek accounts of BHP Brasil, Vale and Samarco and ordered them to
to expedite the remediation process related to the Samarco dam pay preliminary amounts to families in Ponte Nova affected by the
failure, addressing issues considered to be priority in this context. Samarco dam failure. This injunction was revoked on 9 November
No substantive new claims were made under these proceedings. 2016 and the Ponte Nova Court, on 8 May 2018, ordered the
R$475 million (approximately US$87 million) in frozen funds
Issues covered by these Enforcement Proceedings include to be returned. Samarco and BHP Brasil filed their defences,
environmental recovery, human health risk and ecological respectively on 6 December 2016 and 9 March 2017. This case
risk, resettlement of affected communities, infrastructure and has been remitted to the 12th Federal Court in Belo Horizonte
development, registration of certain impacted individuals under and is currently suspended.
the Programs and indemnities for people impacted by the dam
failure, resumption of economic activities, water supply for human In November 2018, the State Prosecutor’s Office in the state of Directors’ Report
consumption and hiring of technical advisors to impacted people Minas Gerais filed another public civil claim against BHP Brasil,
among other key delivery areas. Vale, Samarco and Fundação Renova claiming approximately
R$2 billion (approximately US$366 million) for damages. The public
In the context of these Enforcement Proceedings, BHP Brasil, civil claim was terminated before the subpoenas on the basis that
Samarco and Vale are seeking determinations, including the the claim has already been addressed in the first public civil claim
repealing of fishing bans ordered by the courts or administration filed on 10 December 2015, which has been settled. The State
entities, final compensation of impacted communities, the end of Prosecutor’s Office has appealed the decision.
registration of new indemnification requests for compensation and
indemnification of impacted people, and set-off of compensation On 15 December 2015, Prosecutors filed a civil public action against
paid against future damages that may need to be paid. Samarco and Vale claiming implementation of water capture
Public civil claims commenced by the State Prosecutors’ Office infrastructure and payment of moral damages of R$5 billion Financial Statements
(approximately US$915 million). The injunction relief requested
in the state of Minas Gerais remains suspended, awaiting for a decision by the Court.
On 10 December 2015, the State Prosecutors’ Office in the state
of Minas Gerais filed a public civil claim against BHP Brasil, Vale and On 13 August 2018, State Prosecutor’s Office in the state of Minas
Gerais filed a public civil action against BHP Brasil, Vale, Samarco
Samarco before the State Court in Mariana claiming indemnification
(amount not specified) for moral and material damages to an and Fundação Renova claiming several measures related to
healthcare in Mariana. On 25 April 2019, the parties settled the
unspecified group of individuals affected by the Samarco dam
failure, including the payment of costs for housing and social and case, and the execution of such settlement is ongoing. 6
economic assistance. Public civil claim commenced by the Public Defender
The State Prosecutors’ Office also requested certain interim Department in Minas Gerais
injunctions in connection with this claim, including orders for BHP On 25 April 2016, the Public Defender Department filed a public
Brasil, Vale and Samarco to provide housing, health care, financial civil claim against BHP Brasil, Vale and Samarco in the State
assistance and education facilities to the people affected by the Court in Belo Horizonte, Minas Gerais, Brazil claiming R$10 billion
Samarco dam failure. The plaintiff also sought an order to freeze (approximately US$1.8 billion) for collective moral damages Additional information
R$300 million (approximately US$55 million) in Samarco’s bank to be deposited in the State Human Rights Defense Fund. The
accounts. The Court granted the injunction freezing R$300 million Public Defender Department is also seeking a number of social
(approximately US$55 million) in Samarco’s bank accounts for use and environmental remediation measures in relation to the
towards the compensation and remediation measures requested Samarco dam failure, including orders requiring the reparation
under this public civil claim. At a Court hearing on 20 January 2016, of the environmental damage and the reconstruction of properties
the parties agreed that Samarco should unilaterally provide: and populations, including historical, religious, cultural, social,
• flexible housing solutions for 271 displaced families; environmental and immaterial heritages affected by the dam
• monthly salaries to the displaced families for at least 12 months; failure. On 16 March 2016, the Court denied the remediation Shareholder information
measures requested as an injunction by the Public Defender
• a R$20,000 (approximately US$3,700) payment to each Department. The public civil claim was remitted to the 12th
displaced family; Federal Court in Belo Horizonte and is currently suspended.
• a R$100,000 (approximately US$18,000) payment to each
of the families of those deceased, as advance compensation. Public civil claim commenced by the State Prosecutors’ Office
in the state of Espírito Santo
There have been multiple hearings, injunctions and enforcement On 15 January 2016, the State Prosecutors’ Office of Espírito Santo
petitions of previous settlements requested in this public civil filed a public civil claim before the State Court in Espírito Santo
claim. Following Samarco’s request, the Court released part of the against BHP Brasil, Vale and Samarco seeking compensation
frozen amount to pay for (i) the technical entity hired to assist the
(2) Currently, solely BHP Brasil, Vale and Samarco, the Federal Government and the state of Minas Gerais are defendants.
BHP Annual Report 2020 331