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BHP BILLITON PLC - Update - Samarco

Release Date: 30/11/2015 07:05
Code(s): BIL     PDF:  
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Update - Samarco

BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504




NEWS RELEASE
Release Time    IMMEDIATE
Date            30 November 2015
Number          29/15
                                  

                                 UPDATE: SAMARCO

This release provides a further update following the breach of the Fundão tailings dam and
Santarém water dam at the Samarco Mineração S.A (Samarco) iron ore operation in Minas
Gerais, Brazil which occurred on 5 November 2015. BHP Billiton and Vale each hold a 50
per cent interest in Samarco.

Samarco has advised that, at this stage, there are 13 fatalities and six people who remain
unaccounted for. Emergency services continue to search for the six missing people.

Samarco continues to work with the Government authorities in Brazil to relocate displaced
people from temporary accommodation to rented housing. Relocation is expected to be
completed in February 2016.

Clean-up work has commenced in the Barra Longa area, focusing on access roads, housing
and bridge repairs.

Monitoring of the remaining dam structures at Samarco continues. Interim work to repair the
damage to the dams and to reinforce parts of the structure has commenced.

Operations at Samarco remain suspended.

Samarco and local authorities continue to assess and monitor water quality in the Rio Doce
river system. Where water supplies have been affected, alternative water supplies are being
provided by Samarco, working with local authorities.

Samarco has reported that tests on the sediments carried out by the Brazilian Geological
Service (CPRM) from samples taken at four points in the Rio Doce river system over the
period 14 November to 18 November 2015 indicate that concentrations of metals obtained at
these sites do not significantly differ from the results produced by CPRM in 2010.

Samarco reports that analysis by SGS Geosol, a company specialising in environmental
geochemistry, has confirmed that the tailings are composed of materials that are not
hazardous to human health, based on the hazard classification of the material under
Brazilian standards.

Samarco has advised that the tailings material released as a result of the breach of the
Fundão and Santarém dams is considered to be non-reactive and would be geochemically
stable when introduced to the river system or ocean. As a result of the high volume of sand
and clay tailings material that moved through the river system, a large number of fish died
due to reduced oxygen uptake. Assessment of these impacts is ongoing.

The tailings plume has reached the Atlantic Ocean and is dispersing. Samarco has
developed a program for monitoring the plume in the ocean and authorities have provided
direction on the scope of the required testing under the program.

The Brazilian Federal Government and certain State governments have announced that, on
30 November 2015, they intend to commence legal proceedings against Samarco, Vale and

BHP Billiton for clean-up costs and damages. The announcement indicates that the legal
action will demand that the companies establish a fund of BRL 20 billion in aggregate
(approximately US$5.2 billion at current exchange rates) for environmental recovery and
compensation. BHP Billiton has not received formal notice of the action at this stage.
BHP Billiton confirms its commitment to supporting Samarco to rebuild the community and
restore the environment affected by the breach of the dams. This includes plans, announced
by Vale and BHP Billiton on 27 November 2015, to work together with Samarco to establish
a voluntary, non-profit fund to support the recovery of the Rio Doce river system. A copy of
the joint media statement issued by Vale and BHP Billiton on 27 November 2015 is attached.

As announced at the Annual General Meeting of BHP Billiton Limited on 19 November 2015,
the Board of BHP Billiton has established a separate sub-committee to assist the Board in
overseeing the governance of BHP Billiton’s management and response to the events at
Samarco. The members of the sub-committee are John Schubert (as Chairman), Jac
Nasser, Lindsay Maxsted and Malcolm Brinded.

In addition, the Chief Executive Officer, Andrew Mackenzie, has asked BHP Billiton’s Forum
on Corporate Responsibility to play a role in providing a high-level, strategic overview of the
recovery processes and lessons learned for BHP Billiton. For over 15 years, the Forum on
Corporate Responsibility has been a key component of BHP Billiton’s stakeholder
engagement program, providing insight into current and emerging issues on a range of
sustainability topics. The Forum comprises eight highly respected international civil society
leaders as well as members of BHP Billiton’s Group Management Committee.

Further information on BHP Billiton can be found at: www.bhpbilliton.com.



Sponsor: Merrill Lynch South Africa Proprietary Limited
Media Relations                                                        Investor Relations

Australia                                                              Australia

Emily Perry                                                            Tara Dines
Tel: +61 3 9609 2800 Mobile: +61 477 325 803                           Tel: +61 3 9609 2222 Mobile: +61 499 249 005
email: Emily.Perry@bhpbilliton.com                                     email: Tara.Dines@bhpbilliton.com

Paul Hitchins                                                          Andrew Gunn
Tel: + 61 3 9609 2592 Mobile: + 61 419 315 001                         Tel: +61 3 9609 3575 Mobile: +61 402 087 354
email: Paul.Hitchins@bhpbilliton.com                                   email: Andrew.Gunn@bhpbilliton.com

Eleanor Nichols                                                        United Kingdom and South Africa
Tel: +61 3 9609 2360 Mobile: +61 407 064 748
email: Eleanor.Nichols@bhpbilliton.com                                 Jonathan Price
                                                                       Tel: +44 20 7802 4131 Mobile: +44 7990 527 726
United Kingdom and Americas                                            email: Jonathan.H.Price@bhpbilliton.com

Ruban Yogarajah                                                        Dean Simon
Tel: +44 20 7802 4033 Mobile: +44 7827 082 022                         Tel: +44 20 7802 7461 Mobile: +44 7717 511 193
email: Ruban.Yogarajah@bhpbilliton.com                                 email: Dean.Simon@bhpbilliton.com

Jennifer White                                                         Americas
Tel: +44 20 7802 7462 Mobile: +44 7827 253 764
email: Jennifer.White@bhpbilliton.com                                  James Agar
                                                                       Tel: +1 212 310 1421 Mobile: +1 347 882 3011
                                                                       email: James.Agar@bhpbilliton.com

                                                                       Joseph Suarez
                                                                       Tel: +1 212 310 1422 Mobile: +1 646 400 3803
                                                                       email: Joseph.Suarez@bhpbilliton.com

BHP Billiton Limited ABN 49 004 028 077                                BHP Billiton Plc Registration number 3196209
Registered in Australia                                                Registered in England and Wales
Registered Office: Level 16, 171 Collins Street                        Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia                                      London SW1V 1LH United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015                               Tel +44 20 7802 4000 Fax +44 20 7802 4111

                                   Members of the BHP Billiton Group which is headquartered in Australia
                                                          Follow us on social media
NEWS RELEASE
Release Time    IMMEDIATE
Date            27 November 2015


           JOINT STATEMENT ON PLANS TO CREATE RIO DOCE FUND

Vale and BHP Billiton announced today plans to work together, with Samarco, to establish a
voluntary, non-profit fund to support the rescue and recuperation of the Rio Doce river
system, affected by an accident at Samarco’s Fundão dam, in the state of Minas Gerais on 5
November 2015.

The Fund would initially be sponsored by Vale and BHP Billiton. The aim is to seek
additional financial support from other private, public and non-government organisations.
The initial value is still being defined. The objective, however, is that these resources would
support the rescue and recuperation effort of the river system for the longer term.

It is proposed that the Fund would have a committee to guide investment and oversee
budget approval. The number of participants has yet to be defined, but it would likely include
representatives from the private and public entities. A dedicated team would be responsible
for its management, according to the targets established. The Fund would also undergo
regular independent audits. The sponsors are finalising the governance, scope, financial and
stakeholder arrangements associated with the Fund to ensure it can be put into effect as
soon as practicable.

The actions to recuperate the Rio Doce river system include the recomposition of riparian
forest, water quality and aquatic fauna, as well as helping to rescue the biodiversity of the
Rio Doce river basin.

Today just four per cent of the original coverage of the Atlantic Forest remains in the river
basin. Approximately 80 per cent of the area is made up of degraded pastureland. The
deforested earth hinders the infiltration of rainwater, which sustains groundwater levels. The
flow of the Rio Doce in the dry months, which historically was 300m3 per second, fell in the
region of Colatina (Espírito Santo state) in 2015 to 80m3 per second.

Announcing the Fund plans, the CEO of Vale, Murilo Ferreira, and the CEO of BHP Billiton,
Andrew Mackenzie, made the following joint statements of support: “Vale and BHP Billiton
are committed to supporting the rehabilitation of those areas of the Rio Doce system
impacted by the recent tragedy.

“The immediate focus for Samarco has been securing the safety of the operations and
supporting the humanitarian and environmental response. Plans must also be made for the
recovery and rehabilitation of the affected environment.

“The Fund would focus on supporting the remediation of the river as part of the commitment
of Vale, BHP Billiton and Samarco to the aquatic environment following the release of the
tailings into the Doce basin.

“We see this Fund as part of a positive contribution to the people of Brazil, who owe much to
this river system.”

Further information on BHP Billiton can be found at: www.bhpbilliton.com.


Media Relations                                                        Investor Relations

Australia                                                              Australia

Emily Perry                                                            Tara Dines
Tel: +61 3 9609 2800 Mobile: +61 477 325 803                           Tel: +61 3 9609 2222 Mobile: +61 499 249 005
email: Emily.Perry@bhpbilliton.com                                     email: Tara.Dines@bhpbilliton.com

Paul Hitchins                                                          Andrew Gunn
Tel: + 61 3 9609 2592 Mobile: + 61 419 315 001                         Tel: +61 3 9609 3575 Mobile: +61 402 087 354
email: Paul.Hitchins@bhpbilliton.com                                   email: Andrew.Gunn@bhpbilliton.com

Eleanor Nichols                                                        United Kingdom and South Africa
Tel: +61 3 9609 2360 Mobile: +61 407 064 748
email: Eleanor.Nichols@bhpbilliton.com                                 Jonathan Price
                                                                       Tel: +44 20 7802 4131 Mobile: +44 7990 527 726
United Kingdom and Americas                                            email: Jonathan.H.Price@bhpbilliton.com

Ruban Yogarajah                                                        Dean Simon
Tel: +44 20 7802 4033 Mobile: +44 7827 082 022                         Tel: +44 20 7802 7461 Mobile: +44 7717 511 193
email: Ruban.Yogarajah@bhpbilliton.com                                 email: Dean.Simon@bhpbilliton.com

Jennifer White                                                         Americas
Tel: +44 20 7802 7462 Mobile: +44 7827 253 764
email: Jennifer.White@bhpbilliton.com                                  James Agar
                                                                       Tel: +1 212 310 1421 Mobile: +1 347 882 3011
                                                                       email: James.Agar@bhpbilliton.com

                                                                       Joseph Suarez
                                                                       Tel: +1 212 310 1422 Mobile: +1 646 400 3803
                                                                       email: Joseph.Suarez@bhpbilliton.com

BHP Billiton Limited ABN 49 004 028 077                                BHP Billiton Plc Registration number 3196209
Registered in Australia                                                Registered in England and Wales
Registered Office: Level 16, 171 Collins Street                        Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia                                      London SW1V 1LH United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015                               Tel +44 20 7802 4000 Fax +44 20 7802 4111

                                   Members of the BHP Billiton Group which is headquartered in Australia
                                                          Follow us on social media

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