Brazilian mining company Vale said on
Thursday that it has agreed to pay more than seven billion dollars in damages
over the 2019 dam collapse in its Brumadinho mine which led to the death of 270
people, AFP reported.

The agreement is by far the largest
in Latin America, as per the government of Minas Gerais, where the disaster
took place.

Also read: Spain restricts arrivals from Brazil, S.Africa over virus

“This agreement seals Vale’s
commitment to fully compensate for Brumadinho and support the development of
Minas Gerais,” AFP quoted the company as saying in a statement, which
further informed that it would pay for both ‘socio-economic’ and ‘socio-environmental’
damages.

Notably, the disaster led to tons of
toxic and waste-laden water free-flowing into the surrounding area at the time.

Vale’s damage-control would include attempts
to restore the balance of the surrounding environment, including a large-scale
clean-up of the Paraopeba river.

Also read: Brazil Congress elects Bolsonaro allies as new leaders

According to the state administration,
37.7 billion reais, the initial amount negotiated between the two sides, would
have to be extended in case of further spending being necessitated.

The company had reported a net loss
of more than one-and-a-half billion in 2019, and had further termed the period as
the ‘most challenging year of its history’.

The disaster at the time was one of
the worst in the history of Brazil, destroying substantial chunks of territory
near the mine in Brumadinho, a municipality home to 40,000 residents.