BHP ‘doggedly trying to avoid’ responsibility for Brazil dam disaster, English high court hears

In an unprecedented legal move, the largest group lawsuit in English history has commenced, centered on a catastrophic dam collapse linked to the Anglo-Australian mining giant BHP, which tragically claimed the lives of 19 people. The lawsuit seeks up to £36 billion in compensation and involves over 620,000 claimants represented at London’s High Court.

The case stems from the 2015 breach of the Fundão dam, which held toxic waste from an iron ore mine near Mariana, Brazil. Alain Choo Choy KC, representing the claimants, criticized BHP for “cynically and doggedly trying to avoid” responsibility for what has been described as Brazil’s worst environmental disaster. He noted that the inadequacies of Brazil’s reparations process prompted the petitioners to seek justice in England.

Choo Choy highlighted a stark divide between what BHP views as an acceptable compensation offer and what the victims are rightfully owed. “This is not BHP facing up to its responsibilities but rather attempting to sidestep them,” he argued in court documents. He emphasized that there is no wrongdoing in the claimants seeking accountability from BHP in London, especially considering the ineffective avenues for redress available in Brazil.

On November 5, 2015, the dam’s failure unleashed approximately 50 million cubic meters of toxic waste, devastating the small community of Bento Rodrigues just minutes after the breach. The disaster led to significant destruction, including the loss of life, infrastructure, homes, and valuable cultural heritage.

Following the disaster, BHP, alongside its joint venture partner Vale and the Brazilian company Samarco, established the Renova Foundation to address claims for compensation and mitigate environmental harm. Despite this, various parties have pursued independent claims in Brazilian courts, with the largest class action currently on hold amid ongoing settlement discussions.

BHP and Vale had recently proposed raising their compensation offer in Brazil by around $5 billion, bringing it close to $30 billion. However, this offer was dismissed by Pogust Goodhead, the law firm leading the claims in London, as a “desperate attempt” to evade responsibility.

The claimants allege that BHP had been aware of the risks associated with the dam’s operation, pointing to a risk assessment from 2009 that predicted potential fatalities and a 2012 presentation indicating that a dam breach could impact the nearby community in under 10 minutes. They contend that BHP should have implemented a relocation plan for Bento Rodrigues as part of its safety measures.

In its defense, BHP contends that it cannot be held liable as a shareholder and asserts that its directors were not informed of any safety threats regarding the dam. The company claims that continual assurances were given that the dam was being operated safely by both internal and independent experts.

The claimants are represented by a legal framework funded by Gramercy, a U.S.-based alternative asset manager. Among the plaintiffs are not only individuals but also approximately 2,000 businesses, 46 municipalities, and 65 faith-based organizations.

Outside the courtroom, Gelvana Aparecida Rodrigues da Silva, who tragically lost her seven-year-old son Thiago in the disaster, expressed her relentless pursuit of justice, stating, “It’s been really difficult these last nine years, but I have to be strong. My hope is to find justice here. In Brazil, it is hopeless.”

The trial is anticipated to last around 12 weeks, with additional hearings required to determine compensation amounts if BHP is found liable.