ONE OF THE WORLD'S LARGEST MINING COMPANIES FILES FOR BANKRUPTCY

Samarco Mineracao SA, owned by the Brazilian mining company Vale and the BHP Group holding, has filed a lawsuit seeking legal protection against bankruptcy. The appeal to the court of the state of Minas Gerais to restructure the company’s debt, according to Reuters, is similar to the application usually filed by bankrupt companies in the United States, citing Chapter 11 of the bankruptcy code.

Samarco is the second largest mining and iron ore pellet company in the world. Until 2015, the company's capacity reached 30.5 million tons annually. But in November 2015, a dam burst led to the death of 19 people at one of the mines belonging to a Latin American company.

The environmental damage caused by mining waste is the worst disaster in Brazilian history.

According to experts, the company has a financial debt of $ 4.7 billion. It is known that in the first years after the disaster, the company tried to restructure it and was actively negotiating with creditors. However, in 2019, the process slowed down after the changes that were made to the rules for building dams in Brazil (the state authorities actually banned the use of water dams), which seriously affected the work of Samarco.

According to the company's management, the current process of judicial reorganization should not affect the company's ability to repair the damage caused to the environment, as well as to pay compensation to those who suffered from the disaster. Submission of the documents to the court is necessary for the company to continue its work, despite the lawsuits from the creditors.