Mining giants Vale and BHP, along with their joint venture (JV) Samarco, have proposed a settlement of 127 billion reais ($24.88bn) to Brazilian authorities as compensation for the 2015 Mariana tailings dam disaster, Reuters reported.

In a securities filing, Brazilian mining company Vale disclosed that it anticipates a total payment of 127bn reais ($24.88bn), which includes 37bn reais already disbursed.

Vale outlined that of the remaining funds, 72bn reais are proposed to be paid to federal and local governments over time, with an additional 18bn reais earmarked for settling future obligations.

Despite the substantial offer, local prosecutors are pressing for an increase in the settlement amount.

Minas Gerais state prosecutor Jarbas Soares Junior expressed his expectation for a more significant deal.

Soares Junior was quoted by the news agency as saying: "I'm not satisfied with the final amount. But with the companies' stance of seeking something more compatible, yes.”

He added that prosecutors will try to push the companies to raise their offer to 137bn reais.

"They're asking for a 20-year term for everything, so adding another 500 million reais per year would be no sacrifice for them,” he said, referring to the amount still to be paid by the companies.

Vale has previously indicated its expectation to reach a definitive agreement on the dam collapse by the end of the first half of 2024.

The Brazilian miner stated: “The companies and authorities remain committed to advancing negotiations and approving a definitive agreement. The proposal is intended to provide a mutually beneficial resolution for all parties.”

The tailings dam failure occurred on 5 November 2015 near the town of Mariana in the south-eastern state of Minas Gerais, releasing 60 million cubic metres of mud and iron ore waste that flowed down the Doce River into the sea.

The dam was operated by Samarco, a JV of Vale and BHP.

Labelled one of Brazil’s most devastating environmental disasters, the dam collapse claimed the lives of 19 people and left hundreds homeless in the nearby village.