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Mining company BHP can be held ‘strictly liable’ for a deadly dam collapse in Brazil, the High Court has ruled. More than 600,000 Brazilians brought legal action against BHP Group after the collapse of the Fundao dam in November 2015, with the trial starting in London in October 2024. The failure of the dam, which held waste from an iron ore mine in Minas Gerais state in south-eastern Brazil, killed 19 people and sent more than 40 million cubic metres of toxic waste into the Doce River in what has been described as Brazil’s worst environmental disaster. Lawyers representing the hundreds of thousands of individuals, as well as businesses, municipal governments, indigenous groups and faith-based organisations, claimed BHP is liable to pay compensation for losses resulting from the collapse of the dam. The dam was owned and operated by Samarco, a joint venture between Brazilian iron ore miner Vale and BHP’s Brazilian subsidiary. And in a judgment on Friday, Justice O’Farrell found the risk of the dam’s collapse was ‘foreseeable’ and that BHP could be held liable under Brazilian law. She said in a 222-page ruling: ‘BHP’s control of Samarco, their assumption of responsibility for risk assessment, management and control of the tailings dam, and their full participation in the tailings dam operations, gave rise to a legal duty to avoid harm caused by any act or omission that was negligent, imprudent or lacking in skill.’ Justice O’Farrell said that BHP had been negligent or imprudent when it failed to carry out studies and remediation recommended by engineers, allowing waste material to become saturated with water and when Samarco continued to raise height of the dam. Friday’s ruling now allows the municipal governments and individuals to seek compensation. The mining giant had defended the claim, arguing the case ‘rests on incorrectly eliding the distinctions between BHP, BHP Brazil and Samarco’ and that the legal action duplicates remediation works in Brazil. However, the judge found that BHP and Vale were directly or indirectly responsible for Samarco’s activity in owning and operating the dam, finding they were ‘involved in the activities of Samarco at every level, from strategic decisions and dividend shares to detailed operational matters’. Justice O’Farrell also said that by August 2014, BHP knew or should have known that the dam’s internal drainage was inadequate, among other issues. In October 2024, Brazil’s federal government reached an agreement with Samarco to pay 132 billion reais (£17.7 billion) over 20 years. The High Court claim is thought to be one of the largest cases in English legal history, with Poghust Goodhead, representing the individuals and groups seeking damages, previously saying the claims are worth about £36 billion. Pogust Goodhead CEO Alicia Alinia said: ‘Today’s ruling delivers long-overdue justice to the thousands whose lives were torn apart, and it sends an unmistakable message to multinational companies around the world: You cannot disregard your duty of care and walk away from the devastation you caused. Liability has been established. BHP is now compelled to answer for its actions and pay what is owed.’ BHP has said it intends to appeal against Justice O’Farrell’s decision. BHP’s president of Minerals Americas, Brandon Craig, continued: ‘The court has upheld releases provided in Brazil and 240,000 claimants in the UK group action who have already been paid compensation in Brazil have signed full releases. ‘We believe this will significantly reduce the size and value of claims in the UK group action. This and other factors should result in a reduction of the claimants in the UK group action by about half. ‘This underscores the importance of the work done over the past 10 years in Brazil and our position that Brazil is the most appropriate avenue to provide full and fair remediation to those impacted. ‘The Samarco Fundao dam failure in 2015 was a terrible tragedy from the outset, BHP Brasil has been and remains dedicated to supporting reparation and compensation on the ground. ‘Subject to appeals, any damages assessment will be determined in further trials expected to complete in 2028 or 2029.’ BHP shares fell 2.7% to 2,034.00 in London on Tuesday morning and lost 2.2% to R 459.97 in Johannesburg. By Jess Glass and Nina Massey, PA source: PA Copyright 2025 Alliance News Ltd. All Rights Reserved.
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