Brazilian iron ore miner Samarco Mineracao is aiming to raise a capital of $2bn as part of its efforts to exit bankruptcy protection.

Samarco will look to raise the fresh capital from investors by means of a competitive process, reported Reuters, citing court documents. The capita raise will take place nearly a month after its restructuring plan is approved by a Brazilian judge.

The plan is yet to be discussed with the company’s creditors.

The Brazilian firm plans to use the proceeds for funding its operations for the 2022-2027 period. In the court filings, the company stated that the capital increase is crucial for sustaining its operations in the coming years.

In addition, the company will have to make payments to Renova, a foundation established by BHP and Vale to compensate for the tragic Fundão dam burst in 2015.

The company, which is a joint venture between Vale and BHP Group, had filed for bankruptcy protection in April 2021. The bankruptcy protection was pursued by the company to avert creditors’ claims from impacting its operations.

Earlier this year, the company’s noteholders sought claims of AUD1.16bn ($880.5m) alleging that the iron ore miner did not consider their requests to restructure their debt.

Both BHP and Vale could fund the fresh capital increase of Samarco, covering at least a portion of it, a source familiar with the matter told the news agency.

Vale and BHP have separately confirmed a proposed capital increase in their iron ore joint venture to be funded by investors. However, the two firms did not disclose details regarding their possible contribution.

Samarco had restarted its operations in December 2020 at the Germano Complex in Minas Gerais, Brazil, after more than five years of the Fundão dam tragedy.

Operations at the Germano Complex were suspended following the collapse of the tailings dam in the Bento Rodrigues village, resulting in a number of casualties and injuries.