Vale is negotiating BHP exit from Samarco venture -sourceâ€‹
(Adds details on possible deal, context)
SAO PAULO, Jan 3 (Reuters) - Vale SA is in talks
with BHP Billiton Ltd over the future of their joint
venture, Samarco Mineração SA, and one alternative is for the
Brazilian miner to buy out its partner, a source with knowledge
of the matter said on Wednesday.
A price has not yet been established for any buyout and it
would depend on BHP's willingness to exit the venture, said the
person, who spoke on condition of anonymity because the
negotiations are private.
Contacted by Reuters, Vale and BHP declined to comment. â€‹
Samarco has not operated since November 2015 after flood
waters inundated a dam designed to hold back mine waste, causing
it to burst and flood nearby towns. Nineteen people were killed
in what was Brazil's worst environmental disaster.
Vale thinks that Samarco can return to operating sooner
speed up remediation works if it had a sole owner, the source
said. Last month, Samarco won preliminary permits, but is not
yet allowed to restart.
The deal depends on BHP's willingness to exit, the source
added. Samarco is the only iron-ore operation owned by BHP
(Reporting by Tatiana Bautzer in Sao Paulo, Marta Nogueira and
Alexandra Alper in Rio de Janeiro and Tom Westbrook in Sydney;
Editing by Leslie Adler and Grant McCool)
First Published: 2018-01-03 22:12:33
Updated 2018-01-03 22:37:48
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.