BHP, Vale setback as Brazil mining lawsuit reinstated

Mining giant BHP Billiton Friday vowed to appeal a Brazilian court's decision to reinstate a 20 billion reals (US$6.2 billion) civil claim for clean-up costs and damages over the deadly Samarco dam disaster.

The claim had been superseded by a government settlement reached with the owners of the Samarco iron ore mine -- Anglo-Australian firm BHP and Brazil's Vale -- in March after the dam collapse near Mariana in November killed 19 people and wreaked environmental havoc.

The government settlement -- 20 billion reals for damages and 4.4 billion reals for compensation -- was formally approved by a Brazilian court in May.

But the decision was appealed by Brazilian prosecutors, who claimed not enough care was taken in assessing the true costs of the disaster, and on Thursday another court suspended the ruling and reinstated the civil claim, BHP said.

"BHP Billiton Brasil intends to appeal the decision of the Superior Court of Justice," BHP said in a statement.

"In the meantime, Samarco will continue to support the long-term recovery of the communities and environment affected by the dam failure."

The new decision could potentially leave BHP and Vale open to other lawsuits, according to the Sydney Morning Herald.

Shares in BHP rose 3.27 percent to Aus$19.26 in mid-day trade in Sydney.

The world's largest miner has said it was making "substantial progress" to help communities devastated by the accident, described as one of the biggest environmental disasters in Brazil's history.

Separately in May, Brazilian prosecutors filed a US$43.4 billion lawsuit over the accident.