Vale, BHP Billiton CEOs Discuss Brazil Dam-Breach Response
November 11 2015 - 4:00PM
Dow Jones News
MARIANA, Brazil—Six days after a dam at their jointly owned
subsidiary burst and unleashed a deadly avalanche of mud and water,
the heads of two of the world's biggest mining companies made their
first public appearance Wednesday.
But the chief executives of Brazilian mining company Vale SA and
Australia's BHP Billiton Ltd. provided no explanation as to what
may have caused the disaster at their joint venture, Samarco
Mineraç ã o SA.
At a news conference with BHP Billiton CEO Andrew Mackenzie held
next to Samarco's sprawling iron-ore mine, Vale CEO Murilo Ferreira
said their current priority is to save lives and offer solidarity
to victims. After that, he said, the causes of the accident will be
fully investigated.
Brazilian prosecutors and local officials have said Vale may
have been using Samarco's reservoir to hold tailings from its
nearby iron-ore mines. If that proves to be the case, it could
raise questions about overcapacity at the dam system, which Samarco
was expanding as it ramped up iron-ore production to offset falling
prices.
Vale's Mr. Ferreira declined to answer questions at Wednesday's
news conference about whether his company had been dumping its own
mine waste, known as tailings, into the joint venture's dam system
before it broke.
Minas Gerais state prosecutor Carlos Eduardo Ferreira Pinto said
Tuesday that negligence likely played a part in the breach of
Samarco's Fundã o and Santaré m dams. The accident unleashed more
than 60 million cubic meters of water and heavy mud that killed
eight people, left another 21 missing, and caused unmeasured
environmental destruction to hundreds of kilometers of watersheds
downstream.
"No operation of this size just breaks without warning," Mr.
Pinto said Tuesday.
Both Vale and BHP Billiton have said the joint venture bears
responsibility for the accident, but Guilherme de Sá Meneghin,
another state prosecutor, said he could go after Vale's and BHP
Billiton's assets if Samarco doesn't have enough resources to pay
for the damage.
Rescue workers say they have visited all the affected
communities and there is little hope of finding victims alive at
the scene of the surge. A few people initially reported as missing
have turned up elsewhere in the days since the accident.
In addition, Messrs. Mackenzie and Ferreira pledged to support
Samarco's relief efforts by contributing to an emergency fund to
help victims and finance rebuilding. Vale and BHP Billiton have
both sent health, safety, environment and geotechnical experts to
the site.
Mr. Ferreira said it is necessary to unify the companies'
response under Samarco CEO Ricardo Vescovi.
"Samarco has shown itself to be absolutely competent in spite of
the devastating scene that occurred," Mr. Ferreira said.
Write to Paul Kiernan at paul.kiernan@wsj.com
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(END) Dow Jones Newswires
November 11, 2015 15:45 ET (20:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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