ArcelorMittal Signs Pact to Compensate Residents of Itatiaiuçu
ArcelorMittal Brasil has signed of an agreement for indemnity and reparation to residents of the district of Pinheiros in Itatiaiuçu I state of Minas Gerais in
ArcelorMittal Brasil has signed of an agreement for indemnity and reparation to residents of the district of Pinheiros in Itatiaiuçu I state of Minas Gerais in Brazil, affected by the preventive activation of the Mining Dam Emergency Action Plan PAEBM, which took place on February 8, 2019. The Complementary Agreement Term includes criteria for compensation for housing, economic and agricultural activities, moral damages and part of collective damages and the final discussions on collective damages will be dealt with in a parallel agreement. It is the first agreement of this nature signed with Federal and State Public Prosecutors and the community, assisted by an independent technical advisor, which allowed the parameters to be defined collectively, in order to facilitate the construction of definitive repair solutions.
ArcelorMittal sought a composition capable of satisfactorily repairing all the damage caused by the evacuation and believes it has arrived at a substantial proposal, with a technical basis and referenced and widely discussed with all parties. Once the term is signed, the parties will begin individual negotiations with the affected families. The extrajudicial agreement makes it possible for the compensation process to take place in a less bureaucratic and more agile manner.
Main points of the agreement
Families will be compensated according to the restriction on the use of the property located in the Self-Rescue Zone. Those who had their properties fully affected by ZAS will be able to choose between receiving full compensation compatible with the value of the property or joining the assisted purchase program for the acquisition of a new one. In both cases, the nuclear family will continue to own the property in ZAS. The partially affected households, on the other hand, may choose to receive compensation proportional to the impacted area and continue as owners or sell the property to ArcelorMittal.
Economic and agricultural activities
Those affected who demonstrate a loss of income will receive from the company the equivalent of 48 months of average monthly income loss. For the cultivation of gardens, the minimum amount of BRL 27,120.00 will be paid. Fruit cultivation will have the same value as a floor.
Moral damages will be paid individually and not by family nuclei, with a minimum value of BRL 10 thousand per person.
The axis referring to collective damages will be dealt with in future discussions, in a new Complementary Agreement Term to be signed with the Public Ministry and the Affected Persons Commission. However, with a view to fostering the local economy and stimulating income generation, the company has committed to already pay a monthly instalment of 2.5 minimum wages, for a period of 12 months, to the 655 families registered by the independent technical assistance and to family nuclei residing in the districts of Pinheiros, Lagoa das Flores and Vieiras, whose properties are located at a distance of up to 1 km from the limits of the ZAS.
The Serra Azul Mine dam has been deactivated since 2012 and ArcelorMittal is going to deface it, with the removal of the material contained in its interior. In order to make the decharacterization feasible, and in compliance with a resolution of the National Mining Agency ANM, ArcelorMittal will build an Downstream Containment Structure ECJ, capable of retaining the tailings of the dam in the event of failure, minimizing damage to property and the environment.