BHP liable for Brazil dam disaster, UK court rules

In a landmark ruling, the High Court of Justice in London has determined BHP (ASX: BHP) can be held liable over the Fundão iron ore tailings dam failure that killed 19 people in 2015. 

The dam was owned and operated by Samarco, a joint venture between BHP and Vale. The collapse occurred in the Mariana area of Brazil and caused significant environmental impacts in the Doce River basin.   

Justice Finola O’Farrell said in her ruling that the risk of collapse of the dam was foreseeable and that it was “imprudent to continue to raise the dam” given numerous instances of seepage and cracking. 

“It is inconceivable that a decision would have been taken to continue raising the height of the dam in those circumstances and the collapse could have been averted,” the judgment said. 

BHP intends to appeal the decision and will continue to defend the UK group action. 

Pogost Goodhead, the law firm representing more than 620,000 plaintiffs in the lawsuit, has referred to the case as the largest environmental group action in English legal history. 

The law firm says this judgment marks the first time that any of the companies behind the dam collapse have been held to account. 

The claim, initially filed in 2018, was in limbo through 2022 due to a lengthy dispute over jurisdiction in the UK.  

Initially extinguished by the High Court due to duplicating Brazilian proceedings, the Court of Appeal reversed the dismissal, establishing jurisdiction and allowing the class action to proceed in the UK. 

BHP and Vale have already paid billions in compensation relating to the disaster. This ruling could add billions more to the total. 

BHP says it has supported extensive remediation and compensation efforts in Brazil since 2015. 

“More than 610,000 people have already been compensated in Brazil, including approximately 240,000 claimants from the UK group action who have provided releases for related claims,” BHP said in a statement. 

In 2024, BHP and Vale entered an agreement with the states of Minas Gerais, Espírito Santo and public authorities to pay a total of $50b [R$170b] in reparations. 

Pogust Goodhead will reimburse $1.6m (£811,000) after it dropped its London lawsuit against Brazilian mining lobby group Ibram, Reuters reported today.  This lawsuit involved claimants who did not join the $50b compensation agreement reached last year. 

In September, BHP also agreed to a $110m class action settlement with Australian Samarco shareholders. 

The dam collapse, which contained 52 million cubic metres of tailings, further resulted in the displacement of more than 220 families and the pollution and disruption of 670km of river and a large oceanic area, according to the IUCN. 

Gelvana Rodrigues, whose 7-year-old son was swept away and killed by the mudslide in Bento Rodrigues, celebrated the decision.  

“Finally, justice has begun to be served, and those responsible have been held accountable for destroying our lives,” she said.  

“I promised myself that I would not rest until those responsible were punished for the death of my son Thiago. The judge’s decision shows what we have been saying for the last 10 years: it was not an accident, and BHP must take responsibility for its actions.” 

“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,” Pogust Goodhead chief executive Alicia Alinia said. 

“Liability has been established. BHP is now compelled to answer for its actions and pay what is owed.” 

Following the ruling, a damages trial is expected to begin in October 2026. 

BHP says any assessment of damages will be determined in future second and third stage trials expected to be completed in 2028 or 2029.