A relief for BHP Billiton who faced a barrage of attacks from environmentalists over the long term impact such a disaster would cause for the region, the company has promptly closed this eerie chapter of its history escaping this event with a few grazes in what could've been a financially draining exercise as has been seen in the past with the BP oil spill in the Gulf of Mexico that proved detrimental.
With management having wrapped up a settlement it is now able to focus on its core business instead of concentrating on containment of further damages materialising. It can be said that the Brazilian government having been under severe economic strain mostly due to the downturn in commodity prices, the company got away lightly considering that the disaster was the worst mining catastrophe in Brazilian history.
But this is not the end of the tale for the world's biggest miner as its commitment to the communities of Minas Gerais is vital in building up its reputation as a mining company that cares for the lives of those it impacts upon as well as delivering profits to its shareholders, a balance which is often contested in the media but an important balance that sets it apart from its competitors.
Through clear strategic planning, management has been able to steer the company through a difficult period where scrutiny was at its highest and brought the company's focus back into line with where it wants to be headed too. If one looks at the wobbly backdrop that commodity producers have been faced with over the past two years, this current outcome showcases the value edge an investor would attain if the investment choice was based purely on management credentials and abilities, an aspect one needs to pay particular attention to when looking for good value at the extremes of pessimism.
BHP Billiton, Vale's Samarco to pay $5 billion in damages for Brazil dam disaster https://t.co/BNV2HSX12F pic.twitter.com/NIYHDzqj2y— dna (@dna) March 3, 2016
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