Reparations: $7bn compensation for Vale dam disaster victims

Communities hit by a dam disaster in Brazil two years ago which killed 270 people will get a $7bn (£5bn) payout.

The Brumadinho dam contained waste from an iron ore mine but gave way, unleashing a sea of mud which engulfed a staff canteen, offices and farms.

Senior staff at the company responsible – Brazilian mining giant Vale – are facing murder charges over the January 2019 disaster.

The move seals Vale’s aim to “fully compensate” for the disaster, it said.

The state government said the amount was an initial estimate and that the company would have to pay more if necessary.

“The agreement requires Vale to fully repair all environmental damage. The above-mentioned amount… could be increased if necessary,” it said in a statement.

Vale said it would pay both “socio-economic” and “socio-environmental” reparations, funding projects to repair the surrounding environment, including a massive clean-up of the Paraopeba river.

Vale said it would face additional expenses of £2.68bn related to the agreement this year.