FTSE 100 Miner To Fight £4.7bn Dam Burst Claim

BHP Billiton (NYSE: BBL - news) , the FTSE 100 mining firm, has vowed to fight a Brazilian court's decision to reinstate a $6.2bn (£4.7bn) clean-up claim over a dam burst that killed 19 people.

The collapse of the dam, at an iron mine near Mariana in southeast Brazil last November, unleashed a torrent of waste mining mud - with towns up to 50 miles away also slammed by the deluge.

The mine was operated by Samarco - a partnership between BHP and Brazilian firm Vale - which had agreed a lower civil settlement with the government to cover not only the costs of the clean-up but also damages.

The ratification of that deal was overturned in a higher court on Thursday after local prosecutors argued not enough care had been taken in assessing the true costs of the disaster.

In a statement following the ruling BHP - which is based in Australia and dual-listed in Sydney - said: "BHP Billiton Brasil intends to appeal the decision of the Superior Court of Justice.

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

The company has previously described making "substantial progress" in helping communities devastated by the accident - one of the biggest environmental disasters in Brazil's history.

Shares (Berlin: DI6.BE - news) in BHP were up more than 3% in mid-day trade in Sydney.