Brazil govt guarantees payment of R $ 250 million in environmental fines related to Brumadinho

The amount was deposited in a judicial account and will be fully reversed in favour of the environment and society

Sep 14, Environment and Climate: Advocacia-Geral da União and the mining company Vale signed a substitution agreement that guarantees the payment of R $ 250 million related to environmental fines imposed by the Brazilian Institute of the Environment and Renewable Natural Resources (Ibama) due to the rupture of the dams of Mina Córrego do Beans, located in Brumadinho (MG). This value also refers to fines imposed by the State of Minas Gerais.

According to the agreement, it was established that, of the total amount already deposited in court, R $ 150 million will be allocated specifically to seven National Parks in the state of Minas Gerais, thus enabling the strengthening of conservation units and the increase of ecotourism activity. The other R $ 100 million will be used to carry out basic sanitation, solid waste and urban areas projects in the state.

The National Parks that will be contemplated are the Serra da Canastra National Park, Serra do Caparaó National Park, Serra do Cipó National Park, Cavernas do Peruaçu National Park, Semper-Vivas National Park, Serra do Gandarela National Park and the Grande Sertão Veredas National Park.

“It is important to note that this substitute agreement concerns penalties for environmental fines. It does not impact, does not mitigate and does not reduce even a level of responsibility on the part of the company in relation to the repair of environmental damage ”, stressed Federal Attorney Marcelo Kokke.

The agreement was approved by the 12th Federal Civil and Agrarian Court of Minas Gerais and formalized after lengthy negotiations involving AGU, the Ministry of the Environment, Ibama, the Chico Mendes Institute for Biodiversity Conservation (Icmbio) and the mining company. The Advocacia-Geral acted through the Federal Attorney's Office of Minas Gerais in search of the solution of the dispute.

Historical decision

The parties' initiative was highlighted by the court in the homologation decision. “The innovative and proactive stance of the parties involved in the conclusion of the replacement agreement in question should be praised and praised, which, seeking a consensual outcome in relation to its object, excelled in administrative speed and efficiency, not only from a legal perspective, but also in the achievement of evident socio-environmental and socio-economic benefits and, therefore, the effective attendance to the public interest ”, affirmed federal judge Mário de Paula Franco. "This is a historic decision - founded on the systemic logic of managing socio-environmental and socio-economic development, through structural environmental actions and encouraging tourism," he added.

The court stressed that the funds may not, under any circumstances, be used for the acquisition of non-durable consumer goods, as well as payment of salaries and other costs of living expenses and taxes.