BHP and its joint-venture partner Vale have established a process to progress settlement of a civil claim worth $55.35 billion over the deadly 2015 Samarco mine disaster.

Brazilian-based Samarco, along with its parent companies BHP and Vale, also signed a deal with Brazilian prosecutors to settle a $7 billion lawsuit over the disaster.

The settlements relates to a catastrophic incident at the Samarco iron ore mine in which a tailings dam burst, causing a flood that killed 19 people and destroyed several Brazilian communities.

In a statement, BHP said the agreement “enhances community participation in decisions related to the remediation and compensation programs”. 

Under the framework, the more expensive lawsuit will be suspended for the next two years, during which the parties will try to renegotiate a new settlement.

“The renegotiation process will take into account the principles and rules established under the framework agreement, and will be aimed at improvement of the programs, with the involvement of the affected communities,” BHP said in a statement on Tuesday.

An investigation by geotechnical specialists in 2016 found the deadly dam collapse was the result of a series of design and drainage issues over a number of years.

The disaster also caused a massive spill of waste material, as thick red sludge flowed into one of Brazil’s main rivers, the Rio Doce, killing fish and fouling water supplies for hundreds of kilometres before reaching the Atlantic ocean.

Former BHP executive Jimmy Wilson was among 22 people charged by Brazilian prosecutors over their roles in the dam collapse.

Operations at Samarco have remained suspended as talks continue with the government to obtain the required environmental licences.

-with AAP