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BHP to fight revival of £4.7bn claim over mine accident

Published: 03:05 01 Jul 2016 EDT

Map showing the regions of Brazil
The accident in the state of Minas Gerais was one of the worst environmental disasters in history

BHP Billiton PLC (LON:BLT) is to challenge a court ruling reviving a £4.7bn legal claim linked to the fatal collapse of a dam at a mine in Brazil.

The miner vowed to appeal the decision of the Superior Court of Justice (SCJ) to reinstate the BRL20bn public civil claim made by the Brazilian authorities against Samarco, Vale SA (BVMF:Vale5) and BHP Billiton Brasil.

In May, the Federal Court of Appeal in Brasilia ratified a so-called framework agreement to restore the environment and communities affected by the Samarco dam failure last November.

The deal resulted in the suspension of the civil public claim launched by the Brazilian authorities against Samarco, Vale and BHP Billiton Brasil.

But the Federal Prosecutors' Office appealed against the ratification of the agreement and in June, the SCJ suspended it, effectively reinstating the claim.

BHP said in a statement: "BHP Billiton Brasil intends to appeal the SCJ's decision.

"In the meantime, Samarco will continue to support the long-term recovery of the communities and environment affected by the dam failure."

The accident in the state of Minas Gerais was one of the worst environmental disasters in history.

In November last year, an iron ore tailings dam collapsed, resulting in a catastrophic wave of mud that killed 19 people.

The torrent also flattened two villages, left hundreds of people homeless and polluted a major river.

Brazilian iron ore miner Samarco, which is 50% owned by BHP and Vale, ran the site.

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