BHP Group Ltd (LSE:BHP, ASX:BHP)’s legal team has achieved a key victory, as the company, its joint venture Samarco, and partner Vale were acquitted by a Brazilian court in the high-profile Samarco dam collapse case.
In a ruling by Brazil's Regional Federal Court of the 6th Region, BHP and its partners, along with 22 former executives and technicians, were cleared of criminal and environmental charges tied to the 2015 Fundão dam collapse, which led to tragic loss of life and environmental destruction.
The court stated: “The documents, reports, and witness testimonies examined did not identify specific individual actions that directly and decisively contributed to the dam’s collapse.”
In response, BHP said it would review the judgment and assess further steps once it has received the official decision.
Class action progresses
Despite this ruling, a parallel $70 billion class action against BHP is progressing in the UK, involving over 600,000 claimants who are pursuing a class action that could cost the company up to £36 billion ($70 billion).
While the Brazilian settlement addresses significant liabilities, it does not resolve the UK lawsuit, criminal charges, or other claims in Australia and the Netherlands.
Law firm Pogust Goodhead, representing claimants in England, criticised the settlement, describing it as inadequate and noting that victims had not been consulted.
Additionally, BHP and Vale recently agreed on a $45 billion compensation scheme with the Brazilian government, which prevents claimants who accept compensation in Brazil from joining the UK class action.
BHP reiterated its ongoing commitment to the communities affected by the disaster, emphasising its dedication to the long-term recovery efforts in Brazil.
Support for victims
Late last month, BHP chief executive Mike Henry affirmed the company’s commitment to supporting the people affected by the 2015 Samarco dam collapse in Brazil, following the finalisation of the settlement with Brazilian authorities.
The settlement, reached after years of negotiation, aims to provide direct and indirect benefits to some 500,000 Brazilians and mitigate BHP’s liability exposure in other jurisdictions.
The settlement covers compensation and initiatives for economic and environmental recovery, health system funding and income support measures for impacted communities, including farmers, fishers and Indigenous groups.
It includes 100 billion reais for public authorities over 20 years, with an additional 32 billion reais allocated to remediation efforts.
Impacted individuals and small businesses will receive 30,000 reais per person.