BHP facing 620,000 claimants in London trial over Brazilian dam collapse
A landmark trial will get under way at the High Court in London later this month against Anglo-Australian mining firm BHP.
London-listed BHP will defend itself against allegations of negligence and look to avoid paying damages that could rise to as much as £33.6bn at a trial from 21 October relating to its role in one of Brazil’s worst environmental disasters.
The collapse of eastern Brazil’s Fundão dam in 2015 saw roughly 50m cubic metres of toxic iron ore waste into the surrounding areas. It killed 19 people and destroyed bridges, roads, houses and factories, as well as huge swathes of farmland.
It is thought to have caused the largest spread of pollutants in human history.
BHP owned 50 per cent in the firm responsible for managing the dam, which the prosecution will argue renders the mining giant partially responsible for the disaster.
The group action, which comprises more than half a million individuals, 46 municipalities, 2,000 businesses and 65 faith-based institutions, is believed to be the largest of its kind ever to be heard in England.
The case, led by international law firm Pogust Goodhead, is set to argue that BHP, which was in a joint venture with the Brazilian iron-ore mining company Vale, was negligent. Although it was aware of the risks of the dam collapsing, it funded its expansion, it will argue.
The claimants are seeking up to $44bn (£33.6bn) in compensation in a trial that is expected to last 12 weeks.
Earlier this year BHP tabled a $25.5bn (£19.9bn) settlement for reparations.
BHP, Vale and Samarco have already established the Renova Foundation, a vehicle to provide compensation for individuals and some small businesses for loss and damages, as well as mitigating environmental impacts. The firms have already spent more than $7.7bn (£5.9bn) on financial assistance through Renova.
BHP has said it would defend the legal action, and a spokesperson for the miner told The Guardian: “The Fundão dam collapse was a tragedy and our deepest sympathies remain with the impacted families and communities.”
They added: “As a non-operating joint-venture partner in Samarco, BHP Brasil does not have operational or day-to-day control of the business. BHP did not own or operate the dam or any related facilities.”