Australia-based mining giant BHP is strictly liable as ‘polluters’ in respect of damage caused by the 2015 Brazillian dam collapse, the High Court ruled today in a landmark collective action.
Mrs Justice O’Farrell handed down judgment remotely this morning following a five-month trial in Município de Mariana and others v BHP Group (UK) Ltd and BHP Group Ltd which began in October 2024 with closing submissions heard in March this year. The claim, brought by class action specialists Pogust Goodhead on behalf of some 620,000 claimants, is one of the largest civil claims ever lodged in England and Wales. According to the firm it is worth around £36bn.
The 222-page judgment found the ‘risk of collapse of the dam was foreseeable’.
According to the judgment, BHP is strictly liable as 'polluters' in respect of damage caused by the collapse pursuant to Articles 3(IV) and 14, paragraph 1 of Brazil's Environmental Law. BHP is not liable in respect of damage caused by the collapse, pursuant to Articles 116 and/or 117 of Brazil's Corporate Law.
The failure of the Fundão Dam, operated by Samarco, a joint venture between BHP and Brazilian company Vale, released some 45 million cubic metres of tailings from iron ore mining. The collapse and flood killed 19 people and destroyed entire villages. Some of the toxic waste swept into the River Doce, a main water supply, and reached the Atlantic – more than 400 miles away.
A second phase of the trial, to deal with damages, is scheduled for October 2026.
BHP said it intends to appeal. Brandon Craig, president, minerals Americas, said: ‘BHP intends to appeal the court’s decision and we will continue to defend this action. The court has upheld releases provided in Brazil and 240,000 claimants in the UK group action who have already been paid compensation in Brazil have signed full releases. We believe this will significantly reduce the size and value of claims in the UK group action. This and other factors should result in a reduction of the claimants in the UK group action by about half.
‘This underscores the importance of the work done over the past 10 years in Brazil and our position that Brazil is the most appropriate avenue to provide full and fair remediation to those impacted.
‘The Samarco Fundão dam failure in 2015 was a terrible tragedy - from the outset, BHP Brasil has been and remains dedicated to supporting reparation and compensation on the ground. Subject to appeals, any damages assessment will be determined in further trials expected to complete in 2028 or 2029.’
Pogust Goodhead described the judgment as an ‘historic win’. Alicia Alinia, chief executive added: ‘Today’s ruling delivers long-overdue justice to the thousands whose lives were torn apart, and it sends an unmistakable message to multinational companies around the world: You cannot disregard your duty of care and walk away from the devastation you caused. Liability has been established. BHP is now compelled to answer for its actions and pay what is owed.’
Shares in BHP Group Limited fell by 2.25% on the news.
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