Global miners Vale (NYSE: VALE) and BHP (ASX, LON, NYSE: BHP) and their joint venture Samarco have presented Brazilian authorities with a new offer to settle reparations for the Mariana tailings dam collapse in 2015.

Vale said in a securities filing on Wednesday that the new proposal totals 140 billion reais ($26.1 billion), including 37 billion reais already disbursed in reparation measures.

The new offer, which is 13 billion reais higher than the previous one, marks a significant step forward in the negotiations.

The miners had initially offered a total of 127 billion reais ($25.0 billion) in December last year, while the Brazilian government and the affected states had requested 155 billion reais ($30.6 billion).

Last May, Brazil’s government filed a request before a federal court in Minas Gerais state asking that Vale, BHP and Samarco pay 79.6 billion reais ($15.7 billion) within 15 days.

The dam collapse at the Samarco iron ore mine near the town of Mariana in Brazil’s southeastern state of Minas Gerais caused a vast flow of mud and mining waste that buried a nearby village, killing 19 people and leaving hundreds homeless.

The new offer includes a cash payment of 82 billion reais ($15.3 billion) payable over 20 years to the federal government, the states of Minas Gerais and Espírito Santo, and municipalities, and 21 billion reais ($3.9 billion) in obligations to be fulfilled.

The amounts include a 50% contribution from BHP Brasil and Vale as secondary debtors in case Samarco cannot finance as the primary debtor.

Source: MINING.COM – Read More