July 1 (Reuters) - Vale Sa VALE5.SA :
* Brazil's Vale said in a statement it aims to demonstrate to courts that the settlement agreed with the government in March is the best option for repairing damage from the Samarco tailings dam disaster
* The settlement was ratified in May but that decision was suspended on Friday after an appeal from prosecutors
* Samarco is a joint venture between Vale and BHP Billiton BHP.AX BLT.L
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