London, UK – In one of the largest legal claims ever pursued in the courts of England, mining giant BHP is facing a multibillion-dollar lawsuit over the 2015 dam disaster in Brazil, a debacle that claimed lives and devastated the environment.
The case, nearly a decade in the making, seeks up to $47 billion in compensation for the catastrophe at the Fundão tailings dam. This legal battle, involving around 620,000 individuals, dozens of districts, various faith groups, and thousands of businesses, underscores the extent of the dam’s impact.
In addition, the indigenous Krenak people, along with many others, assert that the spill from the dam unleashed toxic waste into the Doce River, a sacred waterway, ruining vital religious and historical artifacts.
BHP, however, has contested the necessity of this new legal action, arguing that it overlaps with ongoing reparative efforts and legal proceedings underway in Brazil. The company communicated through its website its intention to continue defending against the claims vigorously.
The proceedings are being managed by international law firm Pogust Goodhead and are expected to extend over a 12-week trial period.
The environmental catastrophe unfolded in November 2015 near the town of Mariana, Brazil. The collapse of the Fundão dam, which held back millions of cubic meters of iron ore waste, was catastrophic—19 people died, and hundreds were displaced, escalating to one of Brazil’s worst ecological disasters.
The deluge of waste swiftly contaminated vast expanses, including residential areas and the Doce River, leading to significant destruction of infrastructure and land across several key regions including Barra Longa, Santa Cruz do Escalvado, and Rio Doce.
Samarco, a venture co-owned by BHP and Vale, managed the dam involved in the disaster. BHP holds a 50% stake in this entity, which, before the catastrophe, was noted as a significant iron ore pellet producer in Espírito Santo and Minas Gerais states.
In the disaster’s aftermath, BHP has endeavored to address the environmental and communal impacts caused by the dam failure. In 2016, BHP established the Fundação Renova, a non-profit organization dedicated to rehabilitation efforts connected to the disaster.
According to BHP, approximately 430,000 individuals have received financial support or compensation from the efforts of Fundação Renova. By mid-2024, the foundation has distributed around $7.7 billion in compensation and remediation funds helping numerous families relocate and rebuild.
Despite these initiatives, BHP emphasized its operational reforms post-disaster, highlighting a new commitment to safety and sustainability. Notably, Samarco has restarted operations using a novel filtration technology enabling tailings management without dam usage, implementing methods where 80% of waste materials are dry stacked, reducing potential risks.
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