London’s High Court has found mining giant BHP liable for a 2015 dam collapse in Brazil.
The English High Court found that BHP is liable on the basis that it is a “polluter” under Brazilian environmental law and at fault under the Brazilian civil code, rejecting the argument that BHP be held liable under Brazilian corporate law.
The decision follows a five-month stage trial of the U.K. group action.
BHP said it would appeal the ruling and continue to defend against the claim.
The Fundão dam collapsed on November 5, 2015, releasing a deluge of toxic sludge that killed 19 people and polluted the Doce River.
Judge Finola O’Farrell said in her ruling that BHP had acted negligently by ignoring engineering warnings and allowing the dam to be raised, which was the “direct and immediate cause” of the dam’s collapse, Reuters reported.
The Fundão dam was owned and operated by Samarco Mineração S.A. (Samarco), a non-operated joint venture between BHP Brasil and Vale.
BHP said it has supported extensive remediation and compensation efforts in Brazil since 2015.
In October 2024, BHP Brasil, Vale and Samarco entered into a US$32 billion agreement with Brazilian public authorities and public defenders for a full and final settlement of key claims in Brazil in relation to the dam failure.
More than 610,000 people have already been compensated in Brazil, including approximately 240,000 claimants from U.K. group action.
BHP believes the U.K. group action is duplicative of remediation and compensation that have already been paid in Brazil.
A second stage trial, subject to BHP’s appeal, will decide whether losses claimed by the claimants were caused by the dam failure. The trial is scheduled from October 2026 to March 2027.
BHP expects cash outflows relating to Samarco to remain largely aligned with the US$2.2 billion for fiscal 2026 and US$500 million for fiscal 2027, included in BHP’s fiscal year 2025 results announcement.
