BHP has announced an agreement with Vale regarding group action proceedings in the UK concerning the Fundão Dam failure in Brazil. Samarco, a joint venture between BHP Billiton Brasil Ltda (a subsidiary of BHP Group Limited) and Vale, owned and operated the Fundão Dam. BHP Brasil and Vale each hold a 50% stake in Samarco.
BHP Group Limited and BHP Group (UK) Limited (BHP) are defendants in a group action claim in the English High Court. This claim, brought by over 600,000 claimants, seeks damages related to the Fundão Dam failure in 2015 (the English Proceedings). BHP does not consider itself liable to the claimants and will continue to defend against the English Proceedings. BHP believes these proceedings are unnecessary as they duplicate efforts already being addressed by the Renova Foundation and ongoing legal actions in Brazil.
In March 2024, a new claim was filed in the Netherlands against Vale and the Dutch subsidiary of Samarco on behalf of approximately 78,000 Brazilian claimants seeking compensation related to the Fundão Dam failure (the Netherlands Proceedings). BHP is not a defendant in these proceedings.
BHP, BHP Brasil, and Vale have agreed that BHP and Vale will each pay 50% of any amounts potentially payable to the claimants in the English Proceedings, the Netherlands Proceedings, and other related proceedings in Brazil covered by the agreement, without admitting liability. This agreement reinforces the terms of the 2016 Framework Agreement, which requires BHP Brasil and Vale to each contribute 50% to the funding of the Renova Foundation for compensating those impacted by the Fundão Dam failure if Samarco is unable to provide the necessary funding.
In December 2022, BHP initiated a contribution claim against Vale because Vale was not named as a defendant in the English Proceedings. This claim argued that if BHP is required to pay damages to the claimants, Vale should contribute to those payments. However, BHP has decided to withdraw this contribution claim against Vale in light of the agreement reached between the two parties.
BHP Brasil remains committed to supporting local remediation efforts in Brazil through the Renova Foundation. As of 31 May 2024, these efforts have provided approximately $3.5bn in compensation and direct financial aid to around 430,000 people affected by the dam failure.
