Australian mining giant BHP is at the centre of one of the world’s largest.
BHP is one of three companies accused of causing a 2015 dam collapse that wiped out several communities and killed 19 people.
A trial in the UK High Court is now underway to determine whether BHP was responsible for the incident, which was declared Brazil’s biggest environmental disaster.
More than 600,000 people are seeking almost $AU70 billion in compensation.
Background
The Fundão Dam near the city of Mariana in southeast Brazil was constructed by a mining company called Samarco.
Samarco is equally co-owned by global mining companies BHP and Vale.
The dam was used to store toxic waste produced by nearby iron ore mining operations.
Dam collapse
In November 2015, the Fundão Dam ruptured, leaking toxic waste and causing a deadly mudslide.
Toxic sludge travelled over 700 kilometres from the dam and polluted the Doce River — a waterway used by several local communities.
Hundreds of homes were lost, and 19 people were killed.
An estimated 400,000 people lost access to fresh water and 8,500 fishermen lost income from the polluted waterways.
Class action
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A group of around 200,000 impacted residents and local businesses launched legal action against Samarco, Vale and BHP in 2018.
The case was initially dismissed in the UK High Court before it was successfully appealed and reopened in 2022.
Last year, BHP tried to have the case dismissed, but this application was rejected. This cleared the way for the proceedings to begin. Hearings commenced on Monday and are expected to continue for 12 weeks.
Lawyers
UK law firm Pogust Goodheadthe 620,000 individuals who have signed on to the class action.
This includes Brazilian “residents of the affected regions, Indigenous communities… 46 municipalities, 1,500 companies and faith-based institutions.”
Pogust Goodhead said proceedings in an English court were “the only way” to ensure “fair compensation for the damages suffered by the victims.”
Pogust Goodhead called the trial an “opportunity to hold the world’s largest mining company accountable for an environmental crime”.
It’s seeking a historic $70 billion settlement.
In a social media post this week, it said: “Some of the affected people by Fundão dam collapse travelled to London to witness the start of the hearing… They represent the voices of those seeking justice and recognition for the suffering they have endured over the past nine years.”
BHP’s response
BHP, Vale, and Samarco are negotiating with Brazilian authorities to reach a $AU47.5 billion settlement deal for the Fundão dam failure.
In a statement, BHP called the action in the UK “unnecessary,” because “it duplicates matters already covered by the ongoing reparation work and legal proceedings in Brazil.”
BHP also said it’s already compensated more than 430,000 people to the value of around $10 billion “as part of the remediation process.” Pogust Goodhead said a possible settlement in Brazil “will not impact” the UK trial.
