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BHP Confronts Monumental £36bn UK Lawsuit Over Mariana Dam Tragedy

Published October 22, 2024
7 months ago

In what stands as one of the most significant legal challenges to corporate environmental responsibility, the multinational mining company BHP will contend with a multi-billion-pound lawsuit set to commence at London's High Court. The proceedings follow the catastrophic failure of Brazil's Mariana Dam in 2015, an event wrought with environmental, social, and cultural devastation.





Plaintiffs in the case include a staggering array of over 600,000 affected Brazilians, along with 46 local government entities and nearly 2,000 impacted businesses. They are demanding compensation to the tune of £36 billion for the calamity they attribute to negligent operation by the Samarco mining venture, jointly owned by BHP and Vale.




The tragedy was marked by the collapse of a tailings dam which subsequently released a deluge of toxic waste. This not only claimed 19 lives but also rendered thousands homeless, decimated ecosystems, and inflicted significant damage along the Doce River, a site revered by the Krenak indigenous community.


BHP, which has the distinction of being the globe's most valuable mining operation by market capitalization, is challenging these charges. Its stance is that the UK suit is redundant, given existing legal and remedial actions in Brazil that include a proposed $30 billion settlement and the Renova Foundation's work, which to date has distributed nearly $8 billion in support efforts.


However, claimants and their legal representatives from the law firm Pogust Goodhead express a contrasting view, asserting that true accountability can only be achieved through the English justice system. This assertion highlights the broader thematic clash between national jurisdictions and the pursuit of justice in transnational corporate contexts.


The upcoming London high court hearings are poised to unfold over approximately 12 weeks. A key aspect of the deliberation will hinge on the liability of BHP under Brazilian environmental statutes. Additionally, legal standing of the Brazilian municipalities involved, as well as the relevancy of any previously reached deals between the claimants and BHP, will face scrutiny.


The case's trajectory to trial has been nothing short of complex, experiencing a dismissal in 2020, only to be resurrected on appeal. Adding to the twists, a prior conflict between BHP and Vale regarding liabilities resulted in a July agreement to evenly split any adjudicated reparations.


The Mariana Dam rupture signifies not only a sobering reminder of the potentially far-reaching impacts of industrial undertakings but also serves as a focal point for discussions on the reach and remediation of environmental justice.


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