Skip to main content
FlashPoint News
PoliticsSouth America

BHP Found Liable for 2015 Brazil Dam Disaster by UK Court

The High Court in London has ruled that mining company BHP is liable for Brazil's worst environmental disaster due to a dam collapse in 2015, leading to significant casualties and environmental destruction.

Source: bbc.co.uk2 min read
BHP Found Liable for 2015 Brazil Dam Disaster by UK Court
Image via bbc.co.uk

In brief

A London High Court has held BHP liable for the catastrophic dam collapse in Mariana, Brazil, which led to the deaths of 19 people and extensive damage to the environment and local communities. The judgment follows a massive civil lawsuit involving over 600,000 claimants, with BHP planning to appeal. The court emphasized that decisions made regarding the dam's safety contributed directly to the disaster's occurrence.

Mining company BHP has been found liable for a 2015 dam collapse in Brazil, known as the country's worst-ever environmental disaster, by London's High Court.

The dam collapse killed 19 people, polluted the river, and destroyed hundreds of homes.

The civil lawsuit, representing more than 600,000 people including civilians, local governments, and businesses, had been valued at up to £36bn ($48bn).

BHP stated it would appeal against the ruling and continue to fight the lawsuit, arguing that many claimants in the London lawsuit had already received compensation in Brazil.

The dam in Mariana, southeastern Brazil, was owned by Samarco, a joint venture between the mining giants Vale and BHP.

The claimants' lawyers successfully argued that the trial should be held in London because BHP headquarters were in the UK at the time of the dam collapse.

A separate claim against Samarco's second parent company, Brazilian mining company Vale, was filed in the Netherlands, with more than 70,000 plaintiffs.

The dam was used to store waste from iron ore mining. When it burst, it unleashed tens of millions of cubic metres of toxic waste and mud, sweeping through communities and poisoning the river.

Judge Finola O'Farrell stated that continuing to raise the dam's height when it was unsafe was the direct and immediate cause of the collapse, establishing BHP's liability under Brazilian law.

President of BHP's Minerals Americas, Brandon Craig, mentioned that 240,000 claimants from the London lawsuit have already been paid compensation in Brazil.

The lawsuit experienced numerous clashes between the UK firm representing claimants, Pogust Goodhead, and BHP. BHP has consistently denied liability, claiming that the London lawsuit duplicated legal proceedings already underway in Brazil.

BHP and Vale established the Renova Foundation to compensate victims, offering cash compensation or housing in a new city created to replace the town of Novo Bento. They have distributed billions of dollars in reparations.

In June, the BHP and Vale venture claimed around 130,000 people in Brazil settled with them, while Pogust Goodhead alleged that claimants faced pressure to settle for amounts below true values.

Accusations have also surfaced regarding Pogust Goodhead's ethics in representing vulnerable Brazilians, with a judge in Brazil criticizing their contract practices as misleading.

Topics

More on this story