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BHP and Vale offer £1.4 billion settlement to UK lawsuit regarding Brazil dam disaster

The Financial Times reported that global miners BHP and Vale offered $1.4 billion in settlement of a class-action lawsuit filed in the United Kingdom over one of Brazil's most devastating environmental disasters.

The lawsuit is a result of the failure of the Mariana Dam in Southeastern Brazil in 2015. It was owned and operated jointly by BHP and Vale, the joint venture Samarco. The tragedy prompted hundreds of thousands to file lawsuits.

BHP is currently involved in a London-based lawsuit, which claimants' attorneys have estimated at up to 48.29 billion pounds (36 billion pounds).

According to the report, which cited people who are familiar with the issue, the proposed settlement includes $800 million for compensation of victims, and $600 million towards legal costs in connection with High Court proceedings.

Reports claim that the offer was made at a meeting held in New York, on June 15, with Pogust Goodhead (the British law firm representing Claimants) and Gramercy (the U.S. hedge-fund principally supporting the Claimants), the British law firm.

BHP and Vale didn't immediately respond to requests for comments.

BHP described the claims that profit-driven decisions overshadowed safety and contributed to the accident as "farfetched" and "unjustified" in October of last year.

(source: Reuters)