BHP starts production at Samarco five years after dam disaster

Bengaluru — BHP Group said on Thursday it has met licensing requirements to restart operations and has begun iron ore pellet production at its Samarco joint venture with Brazil’s Vale, five years after a deadly dam disaster.

The restart of iron ore mining comes as prices of the commodity have soared in recent weeks on expectation of bullish demand in 2021, as top consumer China further recovers from the coronavirus while a Brazilian supply shortfall persists.

Independent tests had been carried out on Samarco’s preparations for a safe restart and operations are expected initially to produce about 8-million tonnes of iron ore pellets per annum, the miner said.

In the 2015 incident, a mining waste dam burst at Samarco’s site in the town of Mariana, releasing a torrent of sludge that killed 19 people and leading to the suspension of operations and multiple legal cases against the miners.

The collapse is considered Brazil’s worst-ever environmental disaster, contaminating a river for hundreds of miles to the ocean.

Brazilian federal prosecutors filed a lawsuit in October contesting the miners’ compensation package for victims, arguing that the package is far too low. 

Reuters