Samarco dam failure incident cause and casualties still unknown: BHP Billiton updates

BHP Billiton provided an update on Sunday to the incident at the Samarco Mineração S.A., also known as Samarco, its iron ore plant in Brazil.

In Nov. 5, a dam burst at the Germano mine of the aforesaid company in Minas Gerais, Brazil, caused the death of 16 people along with several casualties. Both BHP Billiton and Vale each hold 50 per cent interest in Samarco.

The overall Samarco operation comprises three-tier dam complex including the Fundão dam, the downstream Santarém dam and the Germano dam, which is being monitored constantly after the incident. The Samarco dam complex witnessed the failure of the Fundão dam that ultimately affected the Santarém dam, resulting in the release of mine tailings, flooding the Bento Rodrigues community along with other downstream communities.

BHP Billiton did not divulge the number of lives affected by the incident. It stated that the cause of the dam failure is still unknown. As a 50 per cent shareholder in Samarco, the iron ore giant believes it is its priority to look after the Samarco workforce and surrounding communities.

BHP Billiton’s Chief Executive Officer Andrew Mackenzie will visit the plant this week to learn about the impact of the incident on the people there. He said that he is available to cooperate with the rescue efforts and investigating teams on anything related to the case. At this stage of the incident, it has been discovered that there is at least one confirmed fatality with 13 workers missing.

The number of people affected from the communities is still unknown, but according to the local authorities, a minimum of 15 people are missing at the moment. The company said that further updates will be provided as and when any further information is obtained.

The Samarco produces 30.5 million tonnes of ore per year. In 2015, BHP Billiton’s share was 14.5 million tonnes per year. After the incident, BHP Billiton’s production guidance for FY 2015-16 is under strict review.

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