BHP Billiton and Vale given short extension over Samarco settlement

BHP Billiton and Brazilian partner Vale have been given a short extension to negotiate a settlement over the $49bn and $6bn civil claims relating to the Samarco mine disaster two years ago.

The two owners of the Samarco Mineração joint venture in Brazil's Minais Gerais region, where a burst tailings dam left 19 people dead, have been granted an extension until 16 November by a Brazilian court.

A settlement date of 30 October was set by the court earlier this year after the parties failed to reach an agreement by a previous deadline of 30 June.

A preliminary agreement with the Federal Prosecutors' Office in Brazil suspended a $0.4bn injunction order under the $6bn public civil claim and requests suspension of that claim, with a court decision on suspension still pending.

The court previously suspended the $49bn claim for social, environmental and economic compensation, including a $2.4bn injunction request.

Analysts at Investec said as there was "a lot still to do in two weeks" and so expect the date to be extended again.