By Jake Lloyd-Smith
(Bloomberg) — A United Nations probe into a deadly mine spill in Brazil said waste from a burst dam was toxic and steps taken by BHP Billiton Ltd. and Vale SA to prevent harm weren’t sufficient. The companies’ joint venture Samarco Mineracao SA said there’s no danger to human health as BHP shares fell.
Evidence showed the 50 million metric tons of iron ore waste released from the Nov. 5 dam rupture contained high levels of toxic heavy metals and other toxic chemicals, the UN Office of the High Commissioner for Human Rights said in a statement on Wednesday. Samarco said in a statement that while the company respects UN opinion, it affirms that all measures are being taken.
The event has been called the biggest mining disaster in Brazil’s history, with about 20 people either confirmed dead or still missing after the dam burst sent a wave a mud cascading into a village.
BHP stock sank as much as 3.8 percent to A$18.925 in Sydney on Thursday, the lowest since 2008, and traded at A$18.99 at 3:33 p.m. local time. On Wednesday, Vale stock lost 2.7 percent to close at the lowest level since 2004.
“Steps taken by BHP, Vale and the Brazilian government to prevent harm were clearly insufficient,” said UN Special Rapporteur on human rights and the environment John Knox and UN Special Rapporteur on human rights and hazardous substances and wastes Baskut Tuncak. “This is not the time for defensive posturing.”
If the mud is found to be toxic, those responsible would be punished, Governor Fernando Pimentel told reporters from a shelter for victims a day after the collapse. The statement from Samarco on Wednesday followed remarks on Nov. 6 from the unit that the waste is mostly silica and doesn’t contain chemicals that are harmful to health.
