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Samarco’s judicial recovery process completed

The Minas Gerais court has announced the conclusion of the judicial recovery process for Samarco, a joint mining venture owned by Vale and BHP Billiton. This means the company can now continue operations without judicial oversight.

Samarco’s judicial recovery process completed

Samarco had been held responsible for the collapse of the Fundão dam in Mariana, Minas Gerais, in 2015 — an incident described as the worst environmental disaster in Brazil’s history. The disaster claimed 19 lives and caused severe environmental damage in the region.

In April 2021, Samarco sought court protection citing debts of around 10 billion Brazilian reais. The first recovery plan, presented in June 2021, was rejected following objections from creditors. Revised proposals made throughout 2022 were also rejected. The company finally secured creditor approval with a new plan submitted in July 2023.

Judge Murilo Silvio de Abreu ruled that the obligations of the plan — approved in August 2023 — had been fulfilled, thus ending the process. The plan included debt restructuring, changes in payment terms, and a USD 250 million loan to be provided by shareholders.

The court also ordered the dissolution of the Creditors’ Committee, the dismissal of judicial administrators, and the communication of the closure to the Minas Gerais Board of Trade (JUCEMG) and the Federal Revenue Service. The company must also cover outstanding legal fees and court costs.

During the recovery process, Samarco resumed mining operations at the Germano Complex in Mariana on December 18, 2020.

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