The lawsuit regarding the 2015 collapse of the Mariana dam in Brazil against BHP Group Ltd will be heard in the High Court in London on Monday. The claim amount for this lawsuit is as high as 36 billion British pounds (approximately 47 billion US dollars).
On November 5, 2015, a dam collapse occurred at the Mariana iron ore tailings dam area operated by Samarco, a mining company jointly owned by BHP Group Ltd and Vale SA. The dam collapse led to a large amount of tailings leakage, resulting in 19 deaths, thousands of displaced persons, submergence of forests, severe pollution of the Doce River, which holds special significance for the Krenak indigenous tribe.
BHP Group Ltd has objected to the responsibility for this incident. BHP Group Ltd states that this lawsuit duplicates the legal procedures, compensation, and restoration plans already undertaken in Brazil. The company has mentioned that through the Renova Foundation established with Vale SA in 2016, they have already provided nearly 8 billion US dollars in funds to the affected population.
The Brazilian government is discussing a compensation agreement of nearly 30 billion US dollars with BHP Group Ltd, Vale SA, and Samarco. However, the law firm Pogust Goodhead, representing the plaintiffs, stated in a declaration that the UK lawsuit is the "only way to truly hold BHP Group Ltd accountable". The CEO of the law firm, Tom Goodhead, mentioned that the UK lawsuit forces BHP Group Ltd to acknowledge the need for more action in Brazil, as the proposed compensation agreement does not fully meet their responsibility.
In a statement, BHP Group Ltd mentioned that the company is "working collaboratively with Brazilian authorities and other parties to seek a solution, ultimately establishing a fair and comprehensive compensation and recovery process".
The hearing at the High Court in London is expected to last up to 12 weeks, during which the court will consider whether BHP Group Ltd should be held responsible for the claimants under Brazilian environmental law. Additionally, the court will also examine if the involved Brazilian municipal authorities have the qualifications to file legal suits and the impact of any agreements reached between the claimants and BHP Group Ltd in the UK lawsuit.
It is worth noting that the trial of this lawsuit has faced obstacles. In 2020, the lawsuit was initially dismissed but was later ruled to proceed by the Court of Appeal. Prior to this, BHP Group Ltd and Vale SA had a brief dispute in a UK court regarding their respective responsibilities, but the two companies eventually reached an agreement in July to share potential damages. The outcome of this lawsuit will have a profound impact on BHP Group Ltd and the entire mining industry, with the industry closely watching the ruling of the High Court in London.