PERTH (miningweekly.com) – Mining major BHP Billiton has extended a $115-million short-term facility to its joint venture with iron-ore (JV) major Vale in Brazil, to carry out remediation and stabilisation work to support the Samarco operations.
BHP said on Friday that the funds would be released to Samarco only as required, and subject to the achievement of key milestones.
The short-term facility would allow BHP to preserve the value of its investment as options to restart the Samarco operations continue to be assessed, the company said.
BHP has maintained that a restart of Samarco operations is important for both the JV partners, as well as for the local communities and the wider Brazilian economy.
The company has said that a restart of Samarco will only occur if it is deemed safe and economic to do so, and once all the necessary approvals have been obtained.
Meanwhile, BHP has also approved $181-million to fund the remediation and compensation programmes identified under the previously established Framework Agreement.
The amount will be offset against the group’s $1.2-billion provision, which was recognised at the end of June this year.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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