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BHP and Vale Tumble as Brazil Considers $5.2 Billion Dam Bill

  • Stock slides as much as 6.5% to lowest since November 2008
  • Brazil seeking full environmental recovery for the region
Updated on

BHP Billiton Ltd. and Vale SA shares fell to multi-year lows after Brazil said it would seek as much as 20 billion reais ($5.2 billion) in compensation for a dam collapse at an iron-ore joint venture that left about 20 people dead or missing.

The Melbourne-based miner dropped as much 6.5 percent to 755 pence in London, the lowest since November 2008. It traded at 793.4 pence by 3:22 p.m. while Rio de Janeiro-based Vale was down 2.2 percent to an 11-year low 10.84 reais. The two stocks have lost at least 22 percent since the accident, outpacing the Bloomberg World Mining Index’s 9 percent drop.