January 19, 2017 / 5:43 AM / a year ago

BRIEF-BHP says Samarco,federal prosecutors agree to 2.2 bln Brazilian reals security over dam burst

Jan 19 (Reuters) - BHP Billiton Plc :

* Preliminary agreement with federal prosecutors

* Have entered into a preliminary agreement with federal prosecutors’ office in Brazil in relation to Fundão tailings dam failure on 5 Nov 2015

* Preliminary agreement outlines process and timeline for negotiation of a settlement of BRL 155 billion civil claim relating to dam failure

* Expert advisors’ conclusions will be considered in negotiations of a final settlement arrangement with federal prosecutors, which is expected to occur by 30 June 2017

* Under preliminary agreement, Samarco, Vale And BHP Billiton Brasil will provide total security of BRL 2.2 billion to support payments for programs

* If a final settlement arrangement is not agreed by 30 June, federal prosecutors may request reinstatement by court of brl 1.2 billion (approximately $370 million) injunction.

* Resuming operations would require government approvals, granting of licenses by state authorities

* Resuming operations would also require restructure of Samarco’s debt, completion of commercial arrangements with vale regarding use of its infrastructure. Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +91 80 6749 1136)

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