Jaguar Mining (TSX: JAG) has reached a settlement with the Public Defender’s Office of Minas Gerais following a December landslide at its Turmalina Mine that resulted in the destruction of several homes in the nearby town of Casquilho.
Total compensation under the agreement is estimated at approximately US$10 million at current exchange rates, with the funds to go towards the compensation of individuals and families that were relocated from their homes in early December. Compensation is to cover land, housing, home improvements, relocation expenses, financial losses in commercial and service activities, the interruption of income-generating activities, on top of moral and material damages to those impacted.
The figure is said to be based on precedent from other mining incidents within the province.
Moving forward, the Public Defender’s Office is to meet with each person affected by the tailings landslide and submit a claim to the company, which the company is then to evaluate prior to seeking approval by a judge. If no settlement is reached, the resident may then proceed to a lawsuit to seek just compensation.
The landslide, caused by a failure in the Satinoco dry-stacked tailings pile, is believed to have resulted in the relocation of at least 255 people in the community of Casquilho and resulted in the Turmalina mine being shut down. Jaguar saw a US$52.5 million fine levied by regulators in January in connection with the landslide.
Jaguar Mining last traded at $2.84 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
