BHP Billiton Limited (ASX:BHP) allocates US$211 million for Brazil remediation works

BHP Billiton Limited (ASX: BHP) is currently up 0.3% after making an announcement about Brazil remediation works.

The big Australian has agreed to fund US$211 million in financial support for the Renova Foundation and Samarco until 31 December 2018.

Of the total, US$158 million will be used to fund the Renova Foundation to undertake the remediation and compensation programs identified under the agreement between Samarco, Vale, BHP, the Federal Government of Brazil, the States of Minas Gerais & Espirito Santo and other public authorities.

The US$158 million amount will be offset against the Group’s provision for the Samarco dam failure.

Also, a short-term facility of up to US$53 million will be available for Samarco to carry out ongoing repair works, maintain Samarco’s facilities and support restart planning. Funds will be released to Samarco only as required, and subject to achievement of key milestones.

BHP’s share price has recovered significantly since the disaster took place in November 2015. By 15 January 2016 it had fallen to around $15 and has since recovered to $34.

Is BHP a buy today?

I’m not the best person to be answering that question. BHP has done very well with commodity prices rising nicely over the last year. Analysts feared an oversupply of steel in China and that seems to have disappeared.

Oil has come shooting back, particularly with thanks to troubles in the Middle East and Venezuela.

BHP is in a much better place than it was two and a half years ago but its price has more than doubled. I wouldn’t buy today because it’s dependent on resource prices, which are currently a fair bit higher. It would be better to wait until they’re low again if you’re interested.

Instead, I think it would be better to buy shares of one of these top blue chips.

3 Top Blue Chips To Buy This Year

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!