London's High Court has found mining company BHP liable for the 2015 dam collapse in Brazil. This event resulted in 19 fatalities, extensive river pollution, and the destruction of hundreds of residences. The civil lawsuit, which represents over 600,000 individuals including civilians, local governments, and businesses, is valued at up to £36 billion ($48 billion).
Legal Proceedings and Company Response
BHP has announced its intention to appeal the ruling and continue to contest the lawsuit. The company stated that many claimants involved in the London lawsuit have already received compensation in Brazil.
The dam, located in Mariana, southeastern Brazil, was owned by Samarco, a joint venture between mining companies Vale and BHP. Claimants' lawyers successfully argued for the trial to be held in London, citing BHP's UK headquarters at the time of the collapse. A separate claim against Vale, Samarco's other parent company, has been filed in the Netherlands by more than 70,000 plaintiffs.
The Dam Collapse and Ruling Basis
The dam served as a storage facility for waste from iron ore mining. Its failure released tens of millions of cubic meters of mining waste and mud, impacting communities and contaminating the local river system.
Justice Finola O'Farrell's High Court judgment determined that the continuous elevation of the dam's height despite safety concerns was the "direct and immediate cause" of its collapse. This finding established BHP's liability under Brazilian law.
Compensation Efforts and Disputes
Brandon Craig, President of BHP's Minerals Americas, issued a statement indicating that 240,000 claimants in the London lawsuit have received compensation in Brazil. He expressed the belief that this will significantly reduce the size and value of claims in the UK group action.
BHP has consistently denied liability, arguing that the London lawsuit duplicates existing legal proceedings and reparation programs in Brazil. BHP and Vale established the Renova Foundation to compensate victims, offering monetary compensation or new homes. Billions of dollars have been disbursed through this initiative, reaching hundreds of thousands of people.
In June, a presentation by BHP, Vale, and Samarco indicated that approximately 130,000 individuals in Brazil had reached settlements. In response, Pogust Goodhead, the UK firm representing the claimants, alleged that the companies pressured claimants into settling for amounts below their true value. Pogust Goodhead stated it would seek £1.3 billion in lost legal fees. The firm further alleged that a $30.3 billion compensation agreement signed in October 2024 between Brazil, BHP, Vale, and Samarco prevented claimants from discussing the settlement with Pogust Goodhead or paying its legal fees. Pogust Goodhead also reported incurring $1 billion in borrowing costs for the English case.
BHP has rejected Pogust Goodhead's allegations, disputing their factual and legal basis. The company stated the claims are "without merit" and affirmed its intention to "vigorously contest them." A BHP spokesperson reiterated the company's position that Brazil remains the most suitable and efficient location for addressing compensation related to the dam collapse.