The High Court in London has determined that mining giant BHP is liable for the 2015 collapse of a dam in Brazil, an incident that resulted in the worst environmental disaster in the country's history. The collapse, which occurred at the Mariana dam, resulted in the deaths of 19 individuals and catastrophic pollution of the surrounding river systems, as well as the destruction of hundreds of homes.
The civil lawsuit, which has gathered support from over 600,000 affected parties including civilians and local businesses, is estimated to be worth as much as £36 billion ($48 billion). In response to the ruling, BHP has announced its intention to appeal, asserting that many claimants have already received compensation through legal actions in Brazil.
The dam, owned by Samarco—a joint venture between BHP and Vale—was used for storing waste from iron ore mining. When it collapsed, it released millions of cubic meters of toxic material into nearby communities. Judge Finola O'Farrell indicated that BHP's decision to increase the dam's height past safe limits was a direct cause of the disaster, leading to its liability under Brazilian law.
This ruling could significantly affect BHP, especially as Brazilian authorities have already initiated parallel claims against Vale, another parent company of Samarco, in the Netherlands involving over 70,000 plaintiffs.
Despite rejecting liability, BHP has indicated ongoing efforts to resolve claims locally through the Renova Foundation, which was established to compensate victims of the disaster. Nevertheless, these developments have ignited debates regarding the complexity and efficacy of legal representations in international claims, especially in light of allegations against law firms representing Brazilian claimants for compromising their interests.
