Landmark Ruling Finds BHP Guilty of Dam Collapse, Paving Way for Multibillion-Dollar Payout
A high court in London has ruled that global mining giant BHP Group is liable for the devastating 2015 collapse of a Brazilian dam. The ruling, which could lead to a multibillion-dollar payout, found that the Australian-based company had a responsibility for the disaster despite not owning the dam at the time.
The collapse of the FundΓ£o dam in Mariana, Brazil, released massive amounts of toxic waste into the Doce River, killing 19 people and causing widespread environmental damage. The disaster was described as one of Brazil's worst environmental disasters, with tonnes of sludge destroying a village and badly damaging nearby towns.
According to the ruling, BHP had been aware of the risks associated with the dam's design and construction, including obvious signs of contractive, saturated tailings and numerous incidents of seepage and cracking. The court found that these warning signs could have been addressed to prevent the disaster.
The landmark ruling brings a step closer to securing compensation for 600,000 Brazilians affected by the disaster, with damages yet to be determined in a second phase of the trial. BHP has stated its intention to appeal against the decision and will continue to defend itself against the UK group action.
The ruling is significant, as it addresses only the legal liability for the disaster. The Australian company owns 50% of Samarco, the Brazilian mining company responsible for the iron ore mine where the tailings dam ruptured. The trial was filed in Britain because one of BHP's main legal entities was based there at the time.
The ruling follows a multibillion-dollar settlement reached by Brazil's federal government with other mining companies involved in the disaster. Samarco agreed to pay 132 billion reais (Β£19bn) over 20 years, while BHP had previously stated that the UK legal action was unnecessary and duplicated matters already covered by Brazilian proceedings.
The disaster had a profound impact on the local community, with the Krenak Indigenous people revering the Doce River as a deity. The river has yet to recover from the damage caused by the collapse, highlighting the devastating consequences of environmental disasters like this one.
A high court in London has ruled that global mining giant BHP Group is liable for the devastating 2015 collapse of a Brazilian dam. The ruling, which could lead to a multibillion-dollar payout, found that the Australian-based company had a responsibility for the disaster despite not owning the dam at the time.
The collapse of the FundΓ£o dam in Mariana, Brazil, released massive amounts of toxic waste into the Doce River, killing 19 people and causing widespread environmental damage. The disaster was described as one of Brazil's worst environmental disasters, with tonnes of sludge destroying a village and badly damaging nearby towns.
According to the ruling, BHP had been aware of the risks associated with the dam's design and construction, including obvious signs of contractive, saturated tailings and numerous incidents of seepage and cracking. The court found that these warning signs could have been addressed to prevent the disaster.
The landmark ruling brings a step closer to securing compensation for 600,000 Brazilians affected by the disaster, with damages yet to be determined in a second phase of the trial. BHP has stated its intention to appeal against the decision and will continue to defend itself against the UK group action.
The ruling is significant, as it addresses only the legal liability for the disaster. The Australian company owns 50% of Samarco, the Brazilian mining company responsible for the iron ore mine where the tailings dam ruptured. The trial was filed in Britain because one of BHP's main legal entities was based there at the time.
The ruling follows a multibillion-dollar settlement reached by Brazil's federal government with other mining companies involved in the disaster. Samarco agreed to pay 132 billion reais (Β£19bn) over 20 years, while BHP had previously stated that the UK legal action was unnecessary and duplicated matters already covered by Brazilian proceedings.
The disaster had a profound impact on the local community, with the Krenak Indigenous people revering the Doce River as a deity. The river has yet to recover from the damage caused by the collapse, highlighting the devastating consequences of environmental disasters like this one.