The trial against BHP in the case of the 2015 Brazilian dam disaster will begin on Monday at the High Court in London. The plaintiffs, including more than 600,000 Brazilian citizens, 46 municipalities and about 2,000 businesses, can demand up to $47 billion in damages from the world’s largest mining company. The lawsuit relates to the worst environmental disaster in Brazil’s history, which killed 19 people and caused massive environmental damage.
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The dam, owned by Samarco, a joint venture between BHP and Vale, collapsed in 2015 in the southeastern Brazilian city of Mariana.
The disaster resulted in toxic mining waste flooding the area, claiming lives, leaving thousands homeless and severely polluting the River Doce.
BHP disputes its liabilityand claims the London lawsuit will duplicate legal proceedings already underway in Brazil. According to the company, through the Renova Foundation established in 2016 almost 8 billion dollars have already been paid out to the victims. BHP emphasized in its announcement that
they are working with Brazilian authorities and others to find solutions to finalize a fair and comprehensive compensation and rehabilitation process.
The trial in London is expected to last 12 weeks. Among other things, the court will investigate whether BHP is responsible under Brazilian environmental protection laws, and whether the affected Brazilian municipalities are entitled to take legal action. The path of the lawsuit to the court hearing was not easy. In 2020, it was rejected for the first time, and then it was allowed to continue following the decision of the Court of Appeal. In July, BHP and Vale entered into an agreement on the sharing of potential damages.
Meanwhile the Brazilian government is negotiating a nearly $30 billion compensation deal with BHP, Vale and Samarco.
BHP’s share price did not move significantly on the news today on the London stock exchange.
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Source: Reuters
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