Around two million litres of mud buried two Brazilian towns after a dam broke, forcing the evacuation of thousands of people and leaving thousands more homeless, media reports said Thursday, according to DPA. The dam, belonging to a mining company, broke on Wednesday following days of heavy rain. The State's Environmental System (SEMA) insisted the mud was not toxic, but indicated that the company will not be allowed to rebuild the dam and will have to pay a 50-million-real (23.25-million-dollar) fine. However, according to other reports the mud released contains dangerous residues of the chemicals bauxite and aluminium sulfate. The streets and houses in the towns of Mirai and Muriae - in the south-western Brazilian state of Minas Gerais bordering the state of Rio de Janeiro - were partially buried several metres deep in mud. Plants and animals in the area also suffered serious damage, said the state of Rio's Environment Minister Carlos Minc. Further, the water supply of several towns was interrupted, since the mudslide affected the rivers that they draw on. The state authorities distributed food, clothing and mattresses, and disposed the deployment of cistern-trucks to supply water to the population.