In brief
A groundbreaking deal between mining behemoths BHP and Vale, together with the Brazilian government, has been established to settle claims stemming from the catastrophic 2015 dam collapse, which resulted in Brazil's worst environmental calamity.
The agreement, finalized with the presence of Brazilian President Luis Inacio Lula da Silva, requires BHP and Vale to pay almost $30 billion (£23 billion) for the devastation caused by the Mariana dam failure. The disaster, which occurred in November 2015, released catastrophic amounts of toxic waste that engulfed surrounding towns, rivers, and forests. Tragically, the incident resulted in the loss of 19 lives and left countless residents homeless while severely contaminating the local river system.During the signing ceremony, President Lula emphasized the importance of learning from past mistakes, expressing hope that the mining behemoths would recognize the cost of prevention. "I hope the mining companies have learned their lesson; it would have cost them less to prevent the disaster," he remarked.The dam was operated by Samarco, a collaborative venture between the two companies. Since the disaster, BHP and Vale have established a foundation aimed at compensating affected individuals. To date, this initiative has funded billions in recovery efforts, including the construction of a new town to replace one that was destroyed. However, many survivors still contend that their needs have not been adequately met, citing ongoing struggles nearly a decade after the disaster.In addition to this settlement, more than 620,000 claimants in the UK have initiated legal proceedings against BHP, seeking approximately $47 billion in damages in a trial that commenced earlier this week. The trial's initial phase will determine the parent company’s accountability for the disaster, with around 70,000 plaintiffs also pursuing legal action against Vale in the Netherlands.Both BHP and Vale assert they are not liable for the disaster, arguing that international legal actions are duplicative and unwarranted given that proceedings in Brazil are ongoing. Some Mariana community members have expressed their frustration with the slow pace of Brazilian justice, prompting them to join the UK lawsuit. However, there is speculation that the recent agreement may expedite the resolution of local claims due to heightened international scrutiny.Originally, in 2016, the companies settled with a preliminary payment of about $3.5 billion in current value. Yet, negotiations were revisited in 2021 due to significant delays in Brazilian legal proceedings. The newly signed agreement outlines the miners' obligations, committing 100 billion reais ($17.5 billion; £13.5 billion) to assist local authorities over the next two decades. Additionally, they will allocate 32 billion reais for victim compensation, resettlement, and environmental restoration. The final figure of 38 billion reais reflects payments the companies assert have already been disbursed in compensation to affected individuals.
