Brazil's Vale Offers Samarco $115 Million in Short-Term Credit Lines
November 24 2016 - 4:58PM
Dow Jones News
By Paul Kiernan
RIO DE JANEIRO--Mining giants Vale SA and BHP Billiton Ltd. plan
to offer up to $115 million each in short-term credit lines to
their Samarco joint venture, the operations of which were suspended
after a catastrophic dam collapse last year.
The loans will be used to "support" Samarco's operations in the
first half of 2017, Vale said in a press release, adding that the
funds will be made available as they are needed.
Samarco's iron-ore mining has been shuttered since Nov. 5, 2015,
when its Fundão tailings dam suddenly failed. The incident
triggered an avalanche of mine waste that destroyed communities
below the dam and killed 19 people.
In addition to the loans, Vale added that it expects to
contribute $181 million in the first half of 2017 to help restore
the environment and communities damaged by the accident. That
amount will be discounted from a provision of 3.7 billion reais
($1.09 billion) that Vale revealed in its second-quarter
earnings.
Write to Paul Kiernan at paul.kiernan@wsj.com
(END) Dow Jones Newswires
November 24, 2016 16:43 ET (21:43 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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