ArcelorMittal reaches compensation deal in Brazil for vulnerable tailings dam

ArcelorMittal has reached a preliminary agreement with Brazilian prosecutors in Minas Gerais state to pay 440mn reais (US$92mn) in compensation for an issue with its Serra Azul tailings dam in Itatiaiuçu. 

The money to be paid by ArcelorMittal will be for reparations to families by the higher perceived risk of the dam rupturing, the prosecutors' office said in a statement.

In February 2019, the company activated an emergency plan and national mining regulator ANM declared a level 2 emergency for the dam, forcing the preventive evacuation of communities at risk.

Since the devastating collapses of two large tailings dams, both in Minas Gerais state, one in 2015 operated by Samarco and other in 2019 owned by Vale, authorities have stepped up monitoring of these structures and are pressuring companies to pay financial compensation to the communities affected, including the displacement of the local population.