On July 27, 2016, the Anglo-Australian mining group BHP Billiton Ltd. (BHP Billiton), the world’s largest mining company by market value, announced that its annual net profit would be affected by charges of more than $1 billion related to the fatal dam failure at its iron-ore mining operations in Brazil. The mine and dams were operated by Samarco Mineração SA (Samarco), a joint venture between BHP Billiton and Vale SA. (Vale), the Brazilian iron ore giant.

BHP Billiton said it would record a provision of between $1.1 billion and $1.3 billion for the estimated funding needed by Samarco under an agreement signed with Brazilian authorities in March 2016. Vale had already announced that it would make a provision of 3.7 billion-real ($1.2 billion). “The recognition of the provision demonstrates our support for the long-term recovery of the communities and environment affected by the Samarco tragedy and the belief we have that the agreement is the most appropriate mechanism to do this,” said Andrew Mackenzi (Mackenzi), CEO, BHP Billiton. ..

Operations Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

PayPal (11 USD)

BACKGROUND NOTE - Next Page>>