In brief
In a landmark decision, London's High Court has held BHP responsible for the devastating 2015 dam collapse in Brazil that resulted in 19 fatalities and extensive environmental destruction. The lawsuit, with potential claims reaching £36 billion, involves over 600,000 affected individuals and businesses. BHP intends to appeal the ruling while contesting its liability, amidst claims of compensatory payments already made to various claimants in Brazil.
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 said it would appeal against the ruling and continue to fight the lawsuit, asserting that many claimants had already been compensated in Brazil.
The dam in Mariana, southeastern Brazil, was owned by Samarco, a joint venture between Vale and BHP.
The claimants' lawyers advocated for the trial in London because BHP's headquarters were in the UK when the disaster occurred.
A separate claim against Samarco's parent company, Vale, was filed in the Netherlands, encompassing over 70,000 plaintiffs.
The dam was intended to store waste from iron ore mining, and its collapse released millions of cubic meters of toxic waste into surrounding communities, devastating homes and polluting the river.
Judge Finola O'Farrell stated that the decision to increase the dam's height while it was unsafe was the direct and immediate cause of its collapse, making BHP liable under Brazilian law.
BHP's Minerals Americas President, Brandon Craig, claimed that 240,000 claimants in the UK lawsuit have already been paid compensation in Brazil, suggesting that this would reduce the UK claims' scale.
The legal saga has witnessed ongoing conflicts between BHP and claimants' representatives, Pogust Goodhead, which BHP claims duplicates existing legal processes in Brazil.
BHP and Vale established the Renova Foundation to compensate victims, offering cash or housing replacements for those displaced. They reported settlements with 130,000 individuals in Brazil.
Opposing claims allege Pogust Goodhead pressured claimants to settle for less, with allegations of misleading practices aimed at vulnerable Brazilians prompting criticism from a Brazilian judge.
Despite accusations against Pogust Goodhead, which it has denied, the fallout from the disaster and ensuing legal battles demonstrate the complexities surrounding corporate liability and environmental justice.
