BHP Group Liable for 2015 Brazil Dam Collapse, London Judge Rules
London judge rules BHP liable for Brazil dam disaster

A landmark ruling at the High Court in London has found the global mining giant BHP Group legally responsible for one of Brazil's most severe environmental catastrophes, the 2015 collapse of the Fundão tailings dam.

The Disaster and Its Immediate Aftermath

On 5 November 2015, a tailings dam operated by Samarco Mineração SA suffered a catastrophic failure. The dam, holding back vast quantities of mining waste, ruptured and unleashed an estimated 40 million cubic metres of toxic sludge into the surrounding area of south-eastern Brazil.

The mining waste surge completely obliterated the village of Bento Rodrigues in Minas Gerais state, a once-thriving community that was buried under the mudflow. Other towns downstream were also severely damaged by the deluge. The human cost was stark, with 19 people killed in the disaster.

Widespread Environmental and Cultural Damage

The environmental impact was profound and long-lasting. The torrent of mining waste poured into the Doce River, a vital waterway revered as a deity by the Indigenous Krenak people. A study conducted by the University of Ulster quantified the devastation, reporting that 14 tonnes of freshwater fish were killed and approximately 600 miles of the river ecosystem was severely damaged.

A decade later, the river system has yet to fully recover from the contamination, highlighting the persistent nature of the environmental harm.

The Legal Battle for Compensation

The case was brought before the High Court in London because one of BHP's main legal entities was based in the city at the time of the collapse. The trial commenced in October 2024, with Mrs Justice O’Farrell presiding.

In her ruling, the judge determined that the Anglo-Australian BHP Group was liable for the disaster, despite the company not directly owning the dam. BHP holds a 50% ownership stake in Samarco, the Brazilian company that operated the iron ore mine. The other half of Samarco is owned by the Brazilian mining corporation Vale.

This ruling on liability is a critical first step for the approximately 600,000 Brazilian claimants who are seeking a staggering £36 billion ($47 billion) in compensation. A subsequent phase of the trial will be required to determine the final amount of damages to be paid.

BHP had previously argued that the UK lawsuit was unnecessary, claiming it duplicated legal matters being addressed within Brazil's own judicial system. This ruling comes just days after the Brazilian federal government reached a separate settlement with the mining companies involved. Under that agreement, Samarco agreed to pay 132 billion reais ($23 billion) over two decades to compensate for human, environmental, and infrastructure damage.