Antinuclear

BHP Billiton’s costs for Brazil mine disaster – $3 billion and rising

BHP Billiton’s Samarco costs top $3 billion, ABC News By business reporter Stephen Letts, 28 July 16,  Mining giant BHP Billiton has doubled its provisions for the Samarco mine disaster in Brazil to well in excess of $3 billion.

BHP said it will recognise another provision in the range of $US1.1 to $US1.3 billion ($1.5 to $1.7 billion) on top of $US1.2 billion ($1.6 billion) charge already announced in its half-yearly results in February.

That charge, along with several other asset write-downs, caused BHP to report a record $7.8 billion interim loss.

In a statement to the ASX, BHP said the new provision is approximately equivalent to its 50 per cent share of the current estimate of the Samarco compensation deal struck with Brazilian federal, state and municipal authorities in March.

However, that funding agreement – which was intended to restore and repatriate the community and environment affected by the tailings dam collapse – remains in limbo, having being suspended by Brazil’s Supreme Court last month.

The BHP statement noted the provision reflected the ongoing uncertainty surrounding the nature and timing of a potential restart of the Samarco operations.

The charge will be recognised as an exceptional item in the forthcoming results, together with direct costs of around $US100 million ($133 million)…….http://www.abc.net.au/news/2016-07-28/bhp-billiton-samarco-costs-top-3-billion-dollars/7668832

July 29, 2016 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business