Rio de Janeiro, November 17 (teleSUR-RHC)-- Mining giants BHP-Billiton and Vale have agreed to pay $260 million through their Brazilian subsidiary Samarco for damages caused by an environmental catastrophe that polluted a river, leveled a community, and killed at least 17 people in Brazil two weeks ago.

Samarco signed a “preliminary commitment” on Monday to pay for cleanup, repair, and compensation related to the disaster caused by dam ruptures at its iron ore mine in the southeastern state of Minas Gerais on Nov. 5. 

More than 500 people have been displaced since the reservoir breach unleashed a huge flood of mud and mining waste on the surrounding area. The mudslide contaminated over 300 miles of Brazil’s Doce River, shutdown community water supplies, and almost entirely destroyed the nearby community of Bento Rodrigues. Thousands of people remain vulnerable in the aftermath of the disaster.

According to prosecutors, the extent of damage could amount to much more than the $260 million pledged by Samarco, but the legal commitment is an important step toward compensation.

The announcement comes after the Brazilian environmental agency Ibama fined Samarco $66.3 million last week for damages caused in the disaster.

The news also comes as some 100 protesters hurled mud at Vale’s headquarters in Rio de Janeiro shouting “Vale, you killed me!” 

Experts say the Samarco dam rupture was the biggest mining disaster in Brazil’s history.

According to estimates by Deutsche Bank, the total cost of cleanup billed to the mining companies could be as much as $1 billion.

Samarco will deliver the first $130 million of its $260 million payment within the next 10 days.