At least 26 municipalities affected by the collapse of the Mariana dam in Minas Gerais have signed on to a settlement between the federal and state governments and mining companies Samarco, BHP, and Vale to compensate for the disaster’s damages. The deadline for joining the agreement expired on Thursday (6). Mariana—the most severely impacted city—has not yet agreed to the terms. The dam collapse in November 2015 resulted in 19 deaths and an unprecedented environmental disaster in Brazil.
A total of 20 municipalities in Minas Gerais and six in Espírito Santo accepted the deal. In Minas Gerais, the participating cities include Bugre, Caratinga, Ponte Nova, Iapu, Santana do Paraíso, Marliéria, Córrego Novo, Sobrália, Pingo D’água, Santa Cruz do Escalvado, Rio Doce, Rio Casca, Dionísio, São Pedro dos Ferros, Raul Soares, Barra Longa, Ipatinga, Timóteo, Fernandes Tourinho, and Sem Peixe. In Espírito Santo, the municipalities of Anchieta, Fundão, Serra, Linhares, Conceição da Barra, and São Mateus signed on.
On the eve of the deadline, Supreme Federal Court (STF) Chief Justice Luís Roberto Barroso rejected two requests for an extension to allow local governments more time to review the proposal. Earlier this week, the Minas Gerais Association of Municipalities (AMM) requested an additional 180 days, arguing that newly elected mayors, who took office in January, needed time to assess the agreement. The city of Ouro Preto submitted a similar request.
Justice Barroso ruled that any modification to the already approved agreement would require consensus from all parties. He also stated that the settlement’s scope goes beyond political or electoral interests and that municipal interests should not depend on government transitions. Additionally, he noted that the agreement does not prevent municipalities from pursuing separate legal action.
The municipalities had to decide whether to sign the court-backed settlement in Brazil or await the outcome of a lawsuit in the United Kingdom against BHP. Those that opt for the Brazilian agreement forfeit the right to pursue other legal claims, including international litigation.
Meanwhile, in an ongoing case before the Supreme Court, the Brazilian Mining Institute (IBRAM), which represents mining companies, is challenging whether municipalities can seek legal action abroad. The case is being reviewed by Justice Flávio Dino, who has yet to issue a ruling.
Under the settlement, R$170 billion will be allocated for reparations and compensation, with R$6.1 billion earmarked for affected municipalities. If Mariana signs on, it will receive 20% of that amount.
In a statement, Samarco said that municipalities joining the settlement will receive their first payment in advance.