Landmark Ruling Paves Way for Massive BHP Damages Payout in UK Court
A high court ruling in London has found global mining giant BHP Group liable for the devastating 2015 Brazilian dam collapse that left a trail of destruction and toxic waste in its wake. The disaster, which claimed 19 lives and devastated villages downstream, was sparked by the rupture of a tailings dam owned by Samarco, 50% of which is controlled by BHP.
The high court's judgment, penned by Mrs Justice O'Farrell, held that BHP was responsible for the collapse, despite not owning the dam at the time. The ruling, which spans over 200 pages, deemed the risk of the dam failing "foreseeable" and noted that "obvious signs" had been ignored.
The devastating consequences of the disaster are still being felt today, with the Doce River - a major waterway revered by the Krenak Indigenous people as a deity - yet to recover from the toxic sludge released during the collapse. The ruling brings 600,000 Brazilians one step closer to securing compensation for damages estimated at over Β£36 billion.
BHP has vowed to appeal the decision and defend itself against the UK group action, while Samarco, which is also half-owned by Vale, had already reached a multibillion-dollar settlement with Brazil's federal government just days before the trial began. The agreement meant that Samarco would pay 132 billion reais (Β£19 billion) over two decades to compensate for human, environmental, and infrastructure damage.
The UK court ruling has significant implications for BHP and its Brazilian operations, as it opens the door for further compensation claims in the country. As the second phase of the trial determines damages, the fate of millions of Brazilians hangs in the balance.
A high court ruling in London has found global mining giant BHP Group liable for the devastating 2015 Brazilian dam collapse that left a trail of destruction and toxic waste in its wake. The disaster, which claimed 19 lives and devastated villages downstream, was sparked by the rupture of a tailings dam owned by Samarco, 50% of which is controlled by BHP.
The high court's judgment, penned by Mrs Justice O'Farrell, held that BHP was responsible for the collapse, despite not owning the dam at the time. The ruling, which spans over 200 pages, deemed the risk of the dam failing "foreseeable" and noted that "obvious signs" had been ignored.
The devastating consequences of the disaster are still being felt today, with the Doce River - a major waterway revered by the Krenak Indigenous people as a deity - yet to recover from the toxic sludge released during the collapse. The ruling brings 600,000 Brazilians one step closer to securing compensation for damages estimated at over Β£36 billion.
BHP has vowed to appeal the decision and defend itself against the UK group action, while Samarco, which is also half-owned by Vale, had already reached a multibillion-dollar settlement with Brazil's federal government just days before the trial began. The agreement meant that Samarco would pay 132 billion reais (Β£19 billion) over two decades to compensate for human, environmental, and infrastructure damage.
The UK court ruling has significant implications for BHP and its Brazilian operations, as it opens the door for further compensation claims in the country. As the second phase of the trial determines damages, the fate of millions of Brazilians hangs in the balance.