BHP liable for 2015 Brazil dam collapse, UK court rules
British-Australian mining giant BHP could be held liable for the 2015 collapse of a dam in southeastern Brazil, London’s High Court has ruled, in a case that plaintiffs’ lawyers had previously valued at up to US$48.32 billion ($74.05 billion).
Hundreds of thousands of Brazilians, dozens of local governments and nearly 2,000 businesses have sued BHP over the collapse of the Fundao dam in the Marianas in southeastern Brazil, which is owned and operated by BHP and Vale’s Samarco joint venture.
Brazil’s worst environmental disaster unleashed a wave of toxic mud that killed 19 people, left thousands homeless, flooded forests and polluted a length of the Doce River.
In her ruling, Judge Finola O’Farrell said continuing to increase the height of the dam when it was unsafe was the “direct and immediate cause” of the dam’s collapse, meaning BHP was liable under Brazilian law.
O’Farrell said Australia-based BHP was responsible, although it did not own the dam at the time.
British-Australian BHP owns 50 percent of Brazilian company Samarco, which operates the iron ore mine where the tailings dam collapsed on November 5, 2015.
Enough mining waste was dumped into the Doce River in southeastern Brazil to fill 13,000 Olympic-size swimming pools.
Only liability was mentioned in the decision. In the second stage of the case, compensation will be determined.
The case was filed in Britain because one of BHP’s two main legal entities was based in London at the time.
BHP said it would appeal the decision and continue to fight the case.
BHP’s President of Mines for the Americas, Brandon Craig, said in a statement that “compensation has already been paid in Brazil” to the 240,000 people who are plaintiffs in the London case.
“We believe this will significantly reduce the size and value of claims in the UK class action,” he added.
with AP
