From The Australian:
Mining giants BHP Billiton and Vale will be held accountable for a deadly dam rupture at an iron ore mine in Brazil and face immediate fines of about $US66 million, says President Dilma Rousseff.
“We are committed in the first place to blame those who are responsible. Who is responsible? A private business, Samarco, a big business that has Vale and BHP Billiton as partners,” Ms Rousseff said.The president said “several laws … were actually not followed. That is why we have imposed a preliminary fine.”
She said Samarco faced initial sanctions of 250 million reais ($US66.4 million) for damage to the environment and water supplies and other impacts of the disaster. The mining companies may also be confronted with numerous other categories of fines and demands for compensation, she stressed.
And the WSJ:
If Samarco, the limited-liability company, can’t cover the cleanup and legal costs, the Brazilian government can “go after the assets of the shareholders, Vale and BHP,” said Mario Werneck, an environmental lawyer who has represented people affected by pollution in Minas Gerais, the state where the dam breach occurred.
Brazilian prosecutors say negligence played a role in the failure of the dams and raised the prospect of pursuing BHP and Vale’s assets if Samarco can’t pay.
…In Brazil, the companies face a legal system that allows for an array of entities to be held liable for an incident, including shareholders and firms that have provided technical assistance on a project, said Sergio Jacques, an independent Rio de Janeiro lawyer who has worked for several mining companies.
Brazilian courts also could allow for administrative, criminal and civil cases, including class actions, lawyers there said. Mr. Werneck said Brazil’s courts let people seek compensation for moral damage and harm to patrimonial heritage, in addition to environmental and property damage.
The companies also could face lawsuits in Australia, where BHP is headquartered and where it faced environmental litigation over a Papua New Guinea mine.
Smash.
