BHP wants Vale to join the case, claiming any fine should be split between the two companies, as more than 700,000 Brazilians who were affected by the disaster, being represented by the legal firm Pogust Goodheed, bought the case forward
The Fundão dam in the east of Brazil collapsed in 2015. (Credit: Nazrin Babashova on Unsplash)
Major mining companies BHP and Vale are set to appear in front of the UK High Court, over their role in the 2015 collapse of the Fundão dam in the east of Brazil.
The lawsuit would see a potential £36bn ($47bn) fine for their legal and financial responsibility in a mining disaster in Brazil that killed 19 people. The trial is anticipated to start in October 2024.
Samarco, a joint venture between BHP and Vale, operated the dam that was collapsed.
BHP wants the Brazilian miner Vale to be a co-defendant in the case and claims that any fine should be split between the two companies.
More than 700,000 Brazilians who were affected by the disaster, being represented by the legal firm Pogust Goodheed, have bought the case forward.
In December last year, BHP applied to have Vale join the case and contribute to damages, but Vale challenged the London High Court’s jurisdiction to determine the claim.
Earlier this year, the London court rejected BHP’s request to delay the proceedings until mid-2025, granting a five-month deferral instead.
BHP, in its statement, said: “BHP Brasil remains fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil through the Renova Foundation.
“The Renova Foundation has spent BRL28.1bn (around $5.9bn) on comprehensive remediation and compensation programmes to 31 December 2022.
“This includes over BRL13.5bn (over $2.6bn) paid in indemnities and emergency financial assistance to approximately 410,000 people.
“In addition, approximately 70% of the resettlement cases for the communities impacted by the Fundão Dam collapse have been completed.”
Vale said that London is not the appropriate location for the case, as the company does not have any direct operations in Britain.
Vale lawyer Simon Salzedo KC told Reuters: “Has BHP satisfied the court that London is the natural forum for the dispute? The natural forum is Brazil.”
According to BHP’s lawyers, Vale is also equally responsible, because it shares equal amounts of ownership, control and knowledge in Samarco, with BHP
In 2016, Samarco established Renova Foundation, a redress scheme to provide reparation and compensation programmes for the individuals affected by the disaster.
The joint venture, and its shareholders funded more than $6bn for rehousing, rehabilitation and indemnification for those affected by the disaster.