A UK court has determined that mining giant BHP is liable for the disastrous collapse of the Samarco tailings dam in Brazil, which resulted in the deaths of 19 individuals and the release of 43 million tons of mining waste into the environment. In a significant ruling issued on March 15, 2024, Justice Finola O’Farrell of the High Court stated that the disaster was “foreseeable” and that BHP acted imprudently by continuing to raise the dam without proper analysis of its stability.
The Samarco iron ore mine, co-owned by BHP and Brazilian company Vale, experienced the catastrophic failure of its Fundão tailings dam on November 5, 2015. The collapse released sludge into the Doce River, severely impacting nearby communities and villages around Mariana, Brazil. Justice O’Farrell emphasized that BHP is “strictly liable as ‘polluters’” for the damage caused by the collapse, stating that the company disregarded clear warning signs of instability.
Implications of the Ruling
The ruling, heralded as a “victory for justice” by law firm Pogust Goodhead, has significant implications for BHP. CEO Alicia Alinia remarked that the decision sends a strong message to multinational corporations: negligence cannot be overlooked. “Today’s ruling delivers long-overdue justice to the thousands whose lives were torn apart,” she stated.
For many affected families, including Gelvana Rodrigues, whose young son was killed in the mudslide, the verdict represents a step towards accountability. Rodrigues expressed her relief, saying, “Those responsible have been held accountable for destroying our lives.” She has long sought justice for her son, Thiago, affirming that the judge’s ruling validates their claims that the disaster was not simply an accident.
The claimants are pursuing $72 billion in compensation, but the recent ruling only establishes liability. The extent of damages BHP may face will be determined in subsequent phases of the trial.
BHP’s Response
In response to the ruling, BHP announced its intention to appeal. The company contends that the UK group action is redundant, as it believes that remediation and compensation efforts already conducted in Brazil should be considered final. BHP highlighted that since the dam failure, it, along with Vale and Samarco, has spent approximately US$13.4 billion on reparations and compensation for affected individuals and public authorities in Brazil.
According to BHP, more than 610,000 people have received about US$6.3 billion in compensation, including approximately 240,000 claimants involved in the UK group action who have already been compensated in Brazil. BHP also stated that environmental remediation is nearly complete and that resettlement of affected communities is at 98 percent completion.
Following the announcement of the ruling, BHP’s shares dropped by 2 percent in London. As Australia’s second-largest company, BHP primarily operates in the extraction of iron ore, copper, and coal, making this ruling particularly impactful on its financial future.
The outcome of this case will likely resonate throughout the mining industry, emphasizing the necessity for responsible practices and adherence to safety protocols to prevent similar tragedies in the future.
