The BHP headquarters in Melbourne, Australia. Picture. BLOOMBERG
The BHP headquarters in Melbourne, Australia. Picture. BLOOMBERG

BHP’s share price rose 0.9% to A$29.10 in Sydney on Friday morning after it said its current contribution towards rehabilitating the site of the Samarco dam disaster came to $181m.

The payment is part of a settlement Samarco’s owners, BHP and Vale, made with the Brazilian government to fund, over 15 years, the rehabilitation of the area flooded by the dam collapse.

When the agreement was announced in March 2016, BHP said its Samarco joint venture would pay the foundation about $500m in 2016, about $300m in 2017 and 2018, and then between $200m and $300m for each of the following three years.

BHP said that of the $181m it agreed to pay, $133m would go to the Renova Foundation to undertake remediation and compensation programmes identified under the March 2016 agreement.

It is making $48m available to Samarco, of which $42m is allocated to carry out ongoing repair works, maintain Samarco’s facilities and support restart planning.

The remaining $6m will cover fees payable to experts appointed in connection with the remediation and compensation programmes.

Funds will be released to Samarco only as required, and subject to achievement of key milestones, BHP said.