Brazilian cities sue Samarco over declining taxes following the Mariana disaster

Brazilian cities sue Samarco over declining taxes following the Mariana disaster

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The Brazilian cities of Rio Doce and Santa Cruz do Escalvado in the state of Minas Gerais have filed a lawsuit against pellet producer Samarco for taxes they couldn’t collect after the Mariana dam burst in November 2015, according to a media report by Valor.

The cities are requesting $9.6 million (BRL 48.9 million) in unrealized tax revenues due to the dam burst, which killed 19 people, affected the local communities and halted operations at Samarco for years. Samarco is owned by Vale and BHP Billiton.

Samarco was a major taxpayer, and the company’s halt has financially hit both cities. Samarco told Valor it hadn’t received any notice about the recently filed lawsuit.

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