Mining companies BHP Billiton Brazil (ASX:BHP), Samarco and Vale SA have reached an agreement to settle a $US 5.3 billion lawsuit related to a dam collapse in 2015.
Under the agreement the companies will establish a fund for clean up costs and remediation and for compensation of impacts relating to the tailings dam collapse at the Samarco iron ore mine.
In a statement BHP said the agreement enhances community participation in decisions related to the remediation and compensation programs under the Framework Agreement.
The mining disaster, during which a dam burst, killed 19 people and destroyed several Brazilian communities.
The agreement is conditional on the Federal Government of Brazil signing the agreement.
Shares in the BHP (ASX:BHP) are trading down 1.96 lower to $32.34