The collapse of the dam, which belonged to Samarco, a joint venture of Vale and BHP, caused a giant mudslide that killed 19 people.

One of the largest iron ore producers in the world, posted a $1.7 billion net profit for the quarter ended in March, while analysts polled by LSEG were expecting a $1.9 billion profit.

The proposal comprises an all-share offer for Anglo American by BHP.

Takeover would represent the first mega deal among the world’s biggest diversified miners in over a decade. 

Negotiations resumed this week after the Brazilian government and states rejected the companies' $7.7 billion offer in December.

Iron ore fundamentals have improved and the valuation of the ferrous market is expected to rise, analysts at Galaxy Futures said in a note.

The statement came after iron ore futures prices rose by more than 3% in day trading.