By Brazil Stock Guide – Nineteen additional municipalities agreed to join the final settlement covering damage caused by the 2015 Fundão dam collapse in Mariana, Minas Gerais, Vale SA (B3: VALE3) said Thursday.
The latest commitments bring the number of participating municipalities to 45 out of 49 deemed eligible under the agreement. The municipalities formalized their participation through mediation conducted by Brazil’s Federal Regional Court for the 6th Region, known as TRF-6.
Vale said the municipalities that had not previously joined voluntarily expressed interest in accepting the settlement’s conditions.
Payment terms
Participating municipalities must meet a series of requirements before receiving compensation. Those conditions include withdrawing lawsuits and other legal proceedings connected to the dam collapse in Brazil and abroad.
Once the individual terms are approved by the court, each municipality will receive a lump-sum payment equivalent to the first three installments previously distributed under the settlement. The payment is due within 30 days of approval.
Future installments will follow the schedule established by the final settlement. Vale said the participation of most eligible municipalities reduces legal risks related to the disaster.
Fundão dam collapse
The Fundão dam collapsed in Mariana in 2015, causing environmental, social and economic damage across the affected region and along the Doce River.
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