“It would have been cheaper and better if these accidents had never happened,” says Lula about the settlement regarding the Rio Doce Basin

During his participation this Friday, October 25, in an event that marked the signing of the Renegotiation of the Conduct Adjustment settlement regarding Mariana — referring to the tragedy caused by the collapse of the Fundão Dam (Barragem do Fundão), on November 5, 2015 — President Luiz Inácio Lula da Silva underscored that the lessons from Brazil’s largest environmental catastrophe must never be forgotten: “what happened in Mariana was not a climate issue, it was pure and simple irresponsibility with the people of the region.”

“I hope the mining companies learned a lesson. It would have been much cheaper to avoid what happened. Infinitely cheaper. It would certainly not have cost BRL 20 billion to prevent the tragedy. I hope it also serves as a lesson for the other hundred types of garbage that companies throw into dams,” emphasized Lula during the signing of a settlement that foresees payment of BRL 132 billion by companies Samarco (responsible for the Fundão Dam); Vale (Brazilian), and BHP Billiton (Anglo-Australian), which run Samarco. The settlement was also signed by the Attorney General's Office (Advocacia-Geral da União / AGU); the governors of the states of Minas Gerais and Espírito Santo; the Office of the Prosecutor General (Procuradoria-Geral da República / PGR); and the Office of the Public Defender (Defensoria Pública da União).

Não podemos naturalizar tragédias. Tratar como inevitável o que poderia ser evitado. É preciso valorizar a vida humana e a da terra. É o que este acordo de repactuação de Mariana faz, ao priorizar o cuidado com as pessoas, a proteção do meio ambiente e a retomada do… pic.twitter.com/gmr5q93zzW

— Lula (@LulaOficial) October 25, 2024

According to Lula, reaching these results required several conversations. “It was a better settlement than we initially anticipated. I want to address the social movements affected by the Mariana tragedy: those representing people affected by dams, women's movements, Indigenous groups, Quilombolas, and fishers. I have participated in many conciliations as a union leader. Settlements do not always cover all the important issues we advocate for. But often, we settle for what is possible,” stated the president.

"I know that, for many people, although this settlement has reached BRL 170 billion and is certainly the largest settlement ever established in the history of modern capitalism, it is important to remember that we still do not know what was done with the money that went for the foundation established to take care of this," he stated. The President mentioned the fact that the companies allegedly disbursed BRL 38 billion after the tragedy in Mariana through the Renova Foundation.

In fact, the renegotiation of the Conduct Adjustment settlement regarding Mariana foresees the application of BRL 132 billion as of its signing. From this amount, BRL 100 billion represents new resources, which must be paid within up to 20 years by the companies involved in the tragedy in favor of the public authorities, earmarked for various actions. The companies are also responsible for allocating another BRL 32 billion to cover compensation for affected individuals and for reparative actions that will remain under their responsibility.

MINISTRIES — "Our headache begins now. First, because this is a 20-year project, not 20 days. Secondly, because each ministry involved in a specific area must present projects. Because discourse does not make the work happen, the quality of the project does,” stated Lula. “There is no precedent for this in this country. So several ministries are taking on several commitments. And if we are not able to put them in motion, what we are celebrating here today as a victory of the largest settlement ever settled, in 20 months it will start being charged from the government as the worst thing that has ever happened."

According to the president, the settlement allows for the reparation of a tragedy that could have been averted. “There are people who lived in a house, who heard the alarm to leave their house and have not been able to return to their homes since. And I want to know how many houses the Foundation has built. Because now we are going to have to build the houses. And so, my fellow ministers, this is important: after this joyful signature moment, after the joy of having the social movements and yourselves participating in this act, you will hold the responsibility of starting to build the future," he alerted.

The message was received by the several authorities present at the event, including the Attorney General of the Union, Jorge Messias; the Prosecutor General of the Republic, Paulo Gonet; the President of the Supreme Federal Court (STF), Justice Luís Roberto Barroso; governors Renato Casagrande (Espírito Santo) and Romeu Zema (Minas Gerais); the Vice President of the Republic and Minister of Development, Industry, Commerce, and Services, Geraldo Alckmin; and the ministers Rui Costa (Chief of Staff), Alexandre Silveira (Mines and Energy), Nísia Trindade (Health), Jader Filho (Cities), André de Paula (Fisheries and Aquaculture), Anielle Franco (Racial Equality), Sônia Guajajara (Indigenous Peoples), and Fernanda Machiavelli (acting Minister of the Ministry of Agrarian Development).

“The settlement celebrates the capacity to establish national unity and face issues. When politics is regarded as the mediator of social conflict, we can find the ways to solve the real issues afflicting Brazil and the Brazilian people,” underscored Minister Márcio Macêdo, from the Presidency of the Republic’s General Secretariat. “Our sentiments and prayers to those who left their lives and their martyrdom. Here we celebrate their sacred right for reparation,” declared Alckmin.

BNDES — The National Development Bank (Banco Nacional de Desenvolvimento Econômico e Social / BNDES) will manage the Rio Doce Fund, valued at BRL 100 billion. This private fund will receive resources in installments from Samarco Mineração S.A., Vale S.A., and BHP Billiton Brasil Ltda. over 20 years. The first installment, amounting to BRL 5 billion, will be paid 30 days after the signing of the judicial settlement, which totals BRL 170 billion. The funds will support actions aimed at improving social and economic conditions, as well as enhancing environmental quality. According to the settlement signed this Friday, the fund will be regulated through a presidential decree and will have an Executive Committee responsible for establishing action guidelines and approving the annual resource application plan and implementation reports. The Committee’s operational rules will also be determined through a presidential decree.

CONCILIATION — According to Jorge Messias, the document is widely significant. “Signing this renegotiation represents closing a cycle. We had a victory, the victory of dialogue and understanding. And this was only possible because we have a Judiciary Branch that opened up, that turned itself towards conciliation,” he stressed. After nine years of a process that was dragged through the judiciary, Messias highlighted that the settlement had the victims of the tragedy as the central point at all times. “I want to say to the victims, to the population of the Rio Doce basin, that we have a side. And that the entire settlement was built tending to the communities’ historical claim,” he ensured 

VARIOUS FRONTS — According to Minister Rui Costa, the settlement presents clear guidelines that were required by President Lula. “First of all, that the affected communities received the most expressive volume of the benefits. That we looked at the horizon of time to take care of the health of these communities, not only to bring a short-term benefit. And also, to the environment and basic sanitation,” he explained.

FOREIGN JUSTICE — One of the main stakeholders for closing the deal, STF President Luís Roberto Barroso highlighted that the act represents a historical landmark for the Brazilian Judiciary. “This is possibly the largest environmental settlement in human history and the entire history of environmental accidents. The effort was not small, the consequences were not small, and the size of the settlement we have reached is not small,” added Barroso. “The good faith, the good will, the disposition for work and dialogue, the public spirit, when we gather as we have done here, produce memorable and lasting fruit,” underscored the Prosecutor General of the Republic, Paulo Gonet.

GOVERNORS — The governors of the states of Espírito Santo, Renato Casagrande, and Minas Gerais, Romeu Zema, complimented the signing of the document and highlighted its importance for the families affected by the tragedy and for the country as a whole. “Reaching a settlement this size is not easy. We cannot recover the lives of the people we lost. But we can improve the environment where these people are currently living, the people from the Rio Doce Basin,” stated the governor of Espírito Santo. “This settlement represents a very significant landmark, which is moving away from the culture of litigation and closer to the culture of conciliation,” added Romeu Zema.

OBLIGATIONS — Among the obligations for the companies is the removal of 9 million m³ of waste deposited in the Risoleta Neves Hydroelectric Power Plant, located in the Rio Doce Hydrographic Basin, which spans over 83,000 km² in Minas Gerais and Espírito Santo. Additionally, the Definitive Compensation Program (Programa Indenizatório Definitivo / PID) is aimed primarily at those affected by the tragedy who were unable to provide documentation of the damages suffered. They would be entitled to receive BRL 35,000, while those specifically affected, such as fishermen and farmers, would receive BRL 95,000. It is estimated that over 300,000 people will be eligible to receive these amounts.

INTENSE WORK — The settlement is the result of intense political and legal articulation. The process involved 13 ministries and 6 autarchies, as well as 4 other organizations and the National Technical Assistance and Rural Extension Agency (Agência Nacional de Assistência Técnica e Extensão Rural / Anater), which were committed to reparation, among others.

DEATHS AND ENVIRONMENTAL IMPACT — Located 35 Kilometers from the municipality of Mariana, in the state of Minas Gerais, The Fundão Dam was under the responsibility of Samarco, run by mining companies Vale (Brazilian) and BHP Billiton (Anglo-Australian). The disaster resulted in the deaths of 19 people and the disappearance of three others, in addition to leaving 600 people homeless and 1.2 million people without access to potable water. The mud traveled a distance of 663 km until it reached the sea.