State prosecutors in Minas Gerais in south-Eastern Brazil have blocked BRL 500m ($126m) of assets belonging to the Vale SA and BHP Billiton joint venture, Samarco Mineração SA, Kallanish learns from Brazilian authorities.

The decision is aimed at guaranteeing funds for the clean-up and restoration of the towns hit by the tailings dam failure in November 2015 (see Kallanish 7 November).

The companies will have 30 days to present a plan to restore the communities of Barretos and Gesteira as well as Barra Longa’s town hall, the document states. “The plan is expected to contain a detailed road map for its execution, and should be completed within six months,” the court adds.

The local authorities have also announced that a BRL 500,000 daily fine will be imposed on the company if Samarco fails to present a plan within 30 days. Moreover, the companies will have ten days to “… submit an emergency plan including a series of measures to be taken in the event of occurrence of further events.”