On Friday, BHP Group, the mining giant, announced its intention to assess a Brazilian Federal Court ruling concerning a 155 billion reais ($31.53 billion) government claim related to the 2015 collapse of the Fundao dam, owned by Samarco, its joint venture with Vale. The court mandated the establishment of a restitution fund to cover costs for repairs and compensation.
BHP and Vale are facing a lawsuit over their role in the Fundao dam disaster, which left 19 people dead, buried villages, destroyed dozens of miles of riverbanks, and polluted the Rio Doce. The lawsuit could see the companies fined up to $44 billion. The mining firms have denied liability.
In 2022, hundreds of claimants brought a case in the UK High Court seeking reparation and compensation from BHP and Vale for their roles in the disaster. The claim was a CPR Part 7 High Court action, meaning it was not a class action or subject to a group litigation order. The case was against BHP Group Ltd, BHP Brasil, the Samarco Mineracao SA directors, and Vale.
The claimants, represented by London-based law firm Pogust Goodhead, argued that the dam should have been inspected and that BHP knew of the risks but failed to act. They said that BHP had been “woefully negligent in its duty to prevent the catastrophe. “
On Friday, a court of appeal upheld a lower court ruling that the UK-listed mining company should face the claim and that it was inappropriate for the case to be heard in Brazil. The appeals court also agreed with the lower court that the claim was a waste of time and duplicated ongoing legal proceedings in Brazil. The primary trial in the case is scheduled to start in April 2024, but a 14-month delay means it will be well into 2025 before the trial takes place.
Lawyers for the claimants argued that the judge’s decision was “fundamentally flawed” and they had a solid case to win in appeals courts. They have already started to file appeals in the British and Portuguese courts.
Tom Goodhead, a lawyer with Pogust Goodhead representing the claimants, said they would continue to fight “ceaselessly” and in “any court in the world” to hold BHP accountable. He added that they hoped the appeals process would end by early 2020.
BHP said in a statement that it was “fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil.” It added that BHP Brasil’s unit had yet to receive a decision from the court. The company would review the judgment’s implication, the potential for an appeal, and any impact on its provision if required. BHP Brasil has already paid or committed over $6 billion for reparation and compensation. The company has made a further commitment of $1.5 billion to be spent by the end of 2023.
