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Mining

BHP Billiton served with a class action in Australia over Samarco dam failure

BHP Billiton said it intends to defend the claim filed in the Australian state of Victoria

BHP Billiton plc (LON:BLT) has been served with a class action proceeding in the Federal Court of Australia over the 2015 Samarco dam disaster in Brazil.

The company did not specify who filed the class action but said it intends to defend the claim.

In November 2015, a tailings dam wall collapsed at the Samarco operation BHP jointly owned with Vale SA in Brazil, killing 19 people, destroying villages and polluting more than 400 miles of waterways.

US shareholders also filed a class action against BHP in 2016, seeking an unspecified amount of damages.

In June, Samarco and its parent companies signed a deal with Brazilian authorities to settle a 20bn reais lawsuit related to the dam failure.

BHP has also agreed to fund a total of US$211mln in financial support for the Renova Foundation, created to help victims of the disaster.

READ: BHP to pay US$211mln to foundation tasked with Samarco disaster rehabilitation

The miner expects to record a US$650mln charge for the incident in its 2018 results.

In morning trading, shares edged down 0.7% to 1,601p.

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