Braskem reaches a R$1.2 billion agreement with the State of Alagoas; R$139 million has already been paid.

Braskem announced on Monday, the 10th, that it has reached an agreement with the State of Alagoas that provides for the payment of R$ 1.2 billion, of which R$ 139 million has already been paid. The company had provisioned R$ 467 million in previous fiscal years for compensation for property damage to the State.

The agreement concerns compensation, indemnification, and reimbursement related to the geological event that led to the subsidence of the ground in neighborhoods in Maceió, which occurred due to the rock salt mining that the company carried out in the region.

Residents began noticing cracks in 2018. In May 2019, the Brazilian Geological Survey (CPRM), a federal government agency, confirmed that salt mining by Braskem had caused the soil instability. In November of that year, the company decided to permanently close its salt mining wells.

"The balance to be paid by Braskem must be settled in 10 variable annual installments, adjusted mainly after 2030, considering the Company's ability to pay," says the relevant fact published by the company.

According to the document, the agreement, subject to judicial approval, provides for full settlement for any damages arising from or related to the geological event, including the dismissal of the lawsuit filed by the State of Alagoas.

"The signing of the State Agreement represents a significant and important step forward for the company in relation to the impacts resulting from the geological event in Alagoas. Braskem will keep the market informed of any material developments on the subject, in compliance with applicable laws," the company added.