# Ten Years After Fundão, Samarco Generates Cash Again

*The miner posted a US$1.05 billion loss in 3Q25 but reduced losses sharply after completing its court-supervised restructuring.*

- Published: 2025-11-10
- Section: Insights
- Tags: samarco, VALE
- URL: https://brazilstockguide.com/insights/ten-years-after-fundao-samarco-exits-court-recovery-and-generates-cash-again/

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**By Brazil Stock Guide –** Ten years after the collapse of the Fundão dam in Mariana, Minas Gerais — Brazil’s worst-ever environmental disaster — **Samarco Mineração S.A.** is showing signs of recovery. In the **third quarter of 2025**, the company reported a **net loss of US$1.05 billion**, an **84% reduction** from a year earlier, and completed the **court-supervised restructuring** process initiated after the 2015 collapse. Jointly controlled by **Vale** and **BHP**, the miner is entering a new phase of operational.

**Iron ore and pellets output** reached **4.1 million tons**, the highest level since operations resumed. **Net revenue** rose **52% year-on-year**, to **US$440 million**, driven by higher sales volumes despite an **18% drop in average prices**. **Adjusted EBITDA** totaled **US$230 million**, up **47%** year-on-year, with a **52% margin**. Samarco also generated **US$503 million in free cash flow**, reversing last year’s negative result, and cut **net debt by 9%**, to **US$3.8 billion**.

### Reparation and governance

Since the Fundão collapse — which released **40 million cubic meters of tailings** and caused **19 deaths** — Samarco and its shareholders have disbursed over **R$38 billion** in compensation and reparation programs. In 2025, the company signed the **Rio Doce Basin Reparation Agreement**, estimated at **R$170 billion** over 20 years. During the quarter, **US$1.57 billion** were disbursed, including **US$1.56 billion** in shareholder contributions, and the **Renova Foundation** was officially dissolved, transferring all reparation responsibilities directly to Samarco.

Samarco stated that **all geotechnical structures remain within safety parameters**, monitored with advanced technology and in **full compliance with the Global Industry Standard on Tailings Management (GISTM)**. The miner **no longer operates conventional tailings dams**: since restarting operations, it has adopted a **“dam-free” model**, using **dry stacking and tailings filtration**. In this process, **water is almost entirely recirculated**, with **over 90% reuse**, significantly reducing external water intake and environmental impact.

According to the quarterly report, **100% of the company’s energy comes from renewable sources**, and **ore slurry is transported via closed pipelines**, ensuring a **carbon-neutral logistics route** in line with its environmental commitments.

### Phase 3 and operational outlook

With **Phase 2** of its ramp-up completed and **Phase 3** approved in November, Samarco is preparing to return to **full production capacity**, reinforcing its position in the global high-grade iron ore market. The operational progress led **Fitch Ratings** to **upgrade the company’s credit rating to “B” (from “B-”)**, with a **Positive Outlook**, citing improved cash flow predictability and the completion of its judicial restructuring.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/ten-years-after-fundao-samarco-exits-court-recovery-and-generates-cash-again/