Page 77 - Annual Report 2020

1.8 Samarco 1

Strategic Report

Governance at BHP

Directors’ Report
The Fundão dam failure While restart of Samarco’s operations remains a focus and is Remuneration Report
On 5 November 2015, the Fundão tailings dam operated by Samarco expected to provide a positive effect on livelihoods in impacted
Mineração S.A. (Samarco) failed. Samarco is a non-operated joint communities, restart will only occur, among other considerations,
venture (NOJV) owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale if it is safe, and has the support of the community. Samarco has
S.A. (Vale), with each having a 50 per cent shareholding. a valid operation licence and there are no further legal restrictions
to operate.
3
A significant volume of tailings (39.2 million cubic metres (m ) of
water and mud-like waste resulting from the iron ore beneficiation In relation to the COVID-19 pandemic, some actions were taken
process) was released. Tragically, 19 people died – five community to reduce labour in the field for filtration plant construction and Financial Statements
members and 14 people who were working on the dam when it failed. operational readiness activities without a significant impact on
The communities of Bento Rodrigues, Gesteira and Paracatu de Baixo the restart schedule. Samarco worked to re-establish a normal
were flooded. A number of other communities further downstream in roster regime while respecting all the measures and controls
the states of Minas Gerais and Espírito Santo were also affected by implemented as a result of COVID-19, such as social distancing,
the tailings, as was the environment of the Rio Doce basin. use of masks, access control, temperature scanning and packed
meals distribution, with the aim for restarting operations in FY2021.
Our response and support for Fundação Renova Fundação Renova
More than four years into the recovery process, we remain
committed to the remediation of and compensation for the Fundação Renova’s staff of approximately 660 people is supported
impacts to the people and the environment in the Rio Doce region, by about 7,100 contractors. Its CY2020 budget is R$4.7 billion.
in a challenging and complex operating context. It has an extensive governance structure, which includes Additional information
The Framework Agreement entered into between Samarco, Vale representatives from the Brazilian Federal and State Governments,
and BHP Brasil and the relevant Brazilian authorities in March 2016 local municipalities and environmental agencies. On 25 June 2018,
established Fundação Renova, a not-for-profit, private foundation Samarco, Vale and BHP Brasil signed a Governance Agreement to
that has developed and is implementing 42 remediation and include other parties to the supervision bodies and governance of
compensatory programs to restore the environment and re- Fundação Renova, i.e. the Public Prosecutors’ Office and the Public
establish affected communities. As well as remediating the impacts Defence Office. The Governance Agreement established local
of the dam failure, Fundação Renova is implementing a range of commissions to enable the active participation of the affected
compensatory actions aimed at leaving a lasting, positive legacy people in the decision-making process, by submitting proposals and
for the people and environment of the Rio Doce. recommendations for works to be performed by Fundação Renova.
BHP Brasil provides support to Fundação Renova’s operations By June 2020, a network of 21 local commissions had been Shareholder information
through representation on the Board of Trustees and Board established along the Rio Doce.
Committees, providing technical expertise and regular peer
engagement on issues such as safety, risk management, human
rights and compliance.

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