UK court rules BHP is liable for Samarco tailings dam disaster in Brazil

Mining giant BHP could be forced to pay billions of dollars in damages after a UK court ruled it was responsible for the Samarco dam disaster in Brazil, which killed 19 people and released 43 million tonnes of mining waste into the environment.

In a closely watched decision released Friday night, Supreme Court Justice Finola O’Farrell found the $215 billion giant responsible for the dam collapse, saying the disaster was “foreseeable.”

“Against the obvious signs of shrinkage, saturated tailings, and numerous leaking and cracking events, it was imprudent to continue raising the dam along the alignment of the Setback without appropriate written analysis of the stability of the Setback and associated risks,” he wrote.

Samarco is an iron ore mine located in the Brazilian state of Minas Gerais and jointly owned by BHP and Brazilian company Vale.

On November 5, 2015, the Fundao tailings dam, which contained the mine’s tailings, collapsed, sending sludge into the Doce River and contaminating communities and villages around the Marianas.

“BHP is strictly liable as a ‘polluter’ for the damage caused by the collapse,” Judge O’Farrell said.

Law firm Pogust Goodhead led the case against BHP in the UK and heralded the verdict as a “triumph for justice”.

“Today’s verdict brings long overdue justice to the thousands whose lives have been torn apart and sends a clear message to multinationals around the world: You cannot ignore your duty of care and walk away from the destruction you have caused,” said Alicia Alinia, CEO of Pogust Goodhead.

“Liability has been established. BHP must now take responsibility for its actions and pay its debt.”

Gelvana Rodrigues, whose 7-year-old son was caught in a landslide in Bento Rodrigues and died, said that “justice” has “begun to be manifested”.

“Those responsible were held accountable for destroying our lives,” he said.

“I promised myself that I would not rest until those responsible for the death of my son Thiago are punished.

“The judge’s decision shows what we have been saying for the last 10 years. This was not an accident and BHP must take responsibility for its actions.”

Plaintiffs are seeking $72 billion in damages.

But Friday’s ruling only determined liability, and the extent of damages BHP may have to pay will be decided at future stages of the trial.

BHP said in a statement to the London Stock Exchange that it would appeal the decision.

“BHP believes that the UK class action is a duplication of recovery and compensation that has already occurred in Brazil or is available under the Brazil Agreement,” the company said.

The company said the dam failure was “a tragedy that should never have happened.”

“BHP Brasil, Vale and Samarco have provided US$13.4 billion in compensation and compensation to affected individuals and Public Authorities in Brazil since 2015,” the statement said.

“In total, compensation and financial assistance were paid to more than 610,000 people who received approximately $6.3 billion.

“This includes the approximately 240,000 plaintiffs in the UK class action who received compensation in Brazil and signed releases for related claims. “In addition, remediation of the environment affected by the dam failure is substantially complete and the resettlement of the communities of Novo Bento Rodrigues and Paracatu is 98 percent complete.”

BHP shares in London fell 2 percent following the decision.

BHP, Australia’s second largest company, mainly mines iron ore, copper and coal.