Minas Gerais reduces Satinoco slide fine
Conclusion of negotiations regarding a significant environmental fine reduces Jaguar Mining’s liability.
Parauninha River in Serra do Cipó Serra, Minas Gerais
© Caico Gontijo/Unsplash
The Canadian company describes the result as favourable at BRL59,988,878.25, representing a substantial reduction from an initial estimated liability of R$320mln.
The environmental fine stems from an infraction notice issued following a partial slide at the Satinoco dry stacking pile.
The tailings slide had limited impact compared to other tailings incidents, in that there were no fatalities, physical injuries, or widespread health harm. Several houses were impacted. The affected area was 9.83ha total, with 1.35ha outside the company's direct zone.
Payment will be made in various ways:
- Socio-Environmental Projects Contribution: BRL24,500,000.00 allocated to specific socio-environmental projects within the State of Minas Gerais.
- Instalment Payment: The remaining balance of BRL35,488,878.25 will be paid in 60 equal monthly instalments.
- Grace Period: A grace period of 12 months to start both instalments, commencing from the date of the agreement's judicial confirmation, will precede the start of the monthly instalment payments. For the 60-month installment principal amount (BRL35.5 million), this grace period will incur interest determined by the Sistema Especial de Liquidação e de Custódia, which is Brazil's basic interest rate, set by the Brazilian Central Bank.
