BHP rejects UN's assertion that Brazil mine tailings dam collapse is toxic

Global mining giant BHP Billiton has denied the UN's assertions the tailings release from its Somarco joint venture in Brazil earlier this month are Toxic.

Citing "new evidence," The UN Office of the High Commissioner for Human Rights said some 50 million tonnes of tailings waste from the Somarco joint venture contained high levels of toxic heavy metals and chemicals, which were having an affect on the local population.

"Hospitals in Mariana and Belo Horizonte, the capital city of Minas Gerais State have received several patients," the UN said on Thursday.

The agency didn't say what the basis for their study was, or who collected and processed the evidence.

The Somarco mine's three tiered tailings dam collapsed on Nov. 5, killing 12 people, destroying a nearby village and leaving over a quarter of a million people without potable drinking water.

Scientists have been shocked at the level of devastation caused by the "equivalent of 20,000 Olympic swimming pools" of sludge that has killed thousands of fish along the Rio Doce river, which has now entered the ocean potentially impacted protected turtles.

The statement criticised Somarco and the Brazilian government for their "insufficient" response, alleging they are committing human rights abuses.

"The Government and companies should be doing everything within their power to prevent further harm, including exposure to heavy metals and other toxic chemicals," the statement said.

However BHP Billiton, who holds an equal 50 percent joint stake in Somarco with Brazil's Vale, rejected the notation and claimed the tailings were comprised of clay and silt material from iron ore processing which is naturally abundant in the region.

BHP said the results of the National Water Agency's (ANA) and Brazilian Geological Service (CPRM) analysis on Nov. 14 indicate "that concentrations of metals obtained at these sites do not significantly differ" from samples taken in 2010.

"Based on available data, the tailings are chemically stable. They will not change chemical composition in water and will behave in the environment like normal soils in the catchment," BHP said in a statement on Thursday.

Somarco ordered new testing of the area following the accident which attested the material presented no harm to human health and there was not further contamination of the water as a result of the tailings release, the company said in a statement.

Both BHP and Vale have said they will continue to support Somarco's efforts and establish a 100-million-U.S. dollar relief fund to help communities affected by the deadly dam burst.

Analysts have said the clean-up bill could exceed one billion U.S. dollars, which will also impact the 30.5-million-tonne production per year - BHP's share is 14.5 million tonnes - if the mine is to be closed until 2019.

BHP's share price has taken a savage beating since the disaster, slumping to new seven-year lows on Thursday, weighed by falling commodities and rumours it will cut its progressive dividend.

BHP Billiton had lost 73 Australian cents (0.53 U.S. cents), or 3.71 percent, to 18.94 Australian dollars (13.71 U.S. dollars) per share Thursday. Endit