BHP-Vale Mine Restart Hinges on Deal With Small-Town Mayor

  • Samarco and city officials are scheduled to meet next week
  • Town wants company to pay for plan to protect water supply
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A 34-year-old mayor of a small Brazilian city stands between a giant mineBloomberg Terminal and its plans to resume operations after a disastrous dam collapse.

By refusing to sign off on the use of river water, Leris Braga is delaying permit approvals that would allow the BHP Billiton Ltd.-Vale SA iron venture to rehire thousands of workers and start generating cash again for debt repayments. While that makes Braga a villain for bondholders and unemployed locals, he says he’s only trying to get the company to meet its responsibilities.