BHP Group Funding to Restart Samarco Mining Operations

BHP Group - world's third-largest iron ore producer yesterday approved USD 44 million for BHP Billiton Brazil Ltd's share of funding to restart one concentrator at Samarco Mineracao S.A.'s (Samarco) operations at its Germano complex in Minas Gerais, Brazil. Earlier Samarco's operations were suspended following the failure of the Fundao tailings dam and Santarem water dam on 5 November 2015.

The funding will enable the construction of a filtration plant over the next 12 months and the commencement of operation readiness activities to restart.

On 25th Oct 2019 Samarco received a Corrective Operation License (LOC) for its activities in Minas Gerais. The license was approved by the Mining Activities Chamber (CMI) of the State Council for Environmental Policy (COPAM). Samarco has obtained all environmental licenses and is expected to restart operation.

Hence, following the installation of the filtration technology, Samarco expects to restart operations through one concentrator and produce around 7-8 MnT. It is expected to restart operations towards the end of 2020.

BHP Billiton Brasil Ltda. and Vale S.A. each hold a 50 % interest in Samarco.

BHP total iron ore production during Jan-Sep'19 decreased to 203.7 MnT as compared to 208.5 MnT in CY18 (Jan-Sep'18). BHP Group FY20 iron ore production target remains intact at 273-286 MnT.