A mining company, the owner of a dam that burst last year killing 19 people, will pay the Brazilian government US$3.2 billion (RM13.23 billion) in compensation.

The dam at the Samarco mine that burst in November last year, belonged to the company owned by BHP Billiton and Vale SA.

"We want to build new life on the rubble of an unprecedented tragedy," President Dilma Rousseff said at the signing ceremony in the capital Brasilia.

Millions of cubic metres of mining waste burst from the dam at BHP's joint-venture iron ore mine in Brazil. Now, Four Corners reveals evidence of problems at the mine dating back almost a decade.

Samarco, BHP and co-owner Vale SA said they would establish a foundation to develop and execute environmental and socio-economic programmes to restore the environment, local communities and social conditions of the affected areas.

Samarco will fund the recovery programme with US$500 million in 2016 and US$300 million in 2017 and 2018.

Subject to court approval

Annual contributions for 2019 to 2021 would vary between US$200 million and US$400 million, depending on the "remediation and compensation projects which are to be undertaken in the particular year", the company said.

According to Vale SA: "From signature of the agreement, the foundation will allocate an annual amount of 240 million, in Brazilian real, for a period of 15 years, to the execution of compensation projects. These annual amounts are already included in the first six years' contributions."

That means that the 240 million Brazilian real (US$84 million) is being paid into the fund in the first six years, until 2021. Those amounts paid will then fund the foundation’s activities for the next 15 years.

In the event Samarco is unable to fund its obligations, Vale and BHP Billiton are liable for the costs. The term of the agreement is to last 15 years, renewable for periods of one year successively until its commitments have been fulfilled.

"This agreement is an important step forward in supporting the long-term recovery of the communities and environment affected by the Samarco dam failure," BHP chief executive Andrew Mackenzie said in a statement.

"This agreement demonstrates our commitment to repairing the damage caused and to contributing to a lasting improvement in the Rio Doce."

The agreement is still subject to court approval.

- Bernama-NNN-Agencies