The UK High Court has ruled that BHP is liable for the collapse of a tailings dam at an iron ore mine in Brazil in 2015, an incident that killed 19 people, destroyed entire villages, and polluted hundreds of kilometers of rivers. The ruling opens the door to compensation claims that could exceed $47 billion, filed by around 620,000 affected individuals, despite a previous $30 billion settlement with the Brazilian government.
Justice Finola O’Farrell stated that BHP bears strict liability as a polluter under environmental law, even though the company did not own the dam at the time of the disaster. She noted that BHP holds a 50% stake in Samarco, the Brazilian operator of the mine where the dam failed.
The company plans to appeal the ruling, which comes as it faces additional legal and commercial disputes, contributing to a drop in its London-listed shares. The final compensation amount is expected to be determined during the second and third phases of the trial, scheduled for completion between 2028 and 2029.
This development follows a legal battle that has spanned seven years in UK courts before the Court of Appeal cleared the way for a full trial in 2022, citing the presence of a BHP legal entity headquartered in London at the time of the incident.
