BHP files defence against Vale for dam collapse

Debris of the municipal school of Bento Rodrigues district, which was covered with mud after a dam owned by Vale SA and BHP burst in Mariana, Brazil, on November 10, 2015. Photo: Reuters

Debris of the municipal school of Bento Rodrigues district, which was covered with mud after a dam owned by Vale SA and BHP burst in Mariana, Brazil, on November 10, 2015. Photo: Reuters

Published Dec 6, 2022

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BHP Group Limited and BHP Group (UK) Limited have announced that they have filed their defence and a contribution claim against Brazilian miner Vale in the English court regarding the collapse of the Fundão Dam in Brazil.

The BHP groups were named as defendants in a group action claim in the English High Court by claimants who sought damages for alleged losses concerning the Fundão Dam collapse in 2015.

The Fundão Dam was owned and operated by Samarco, a non-operated joint venture between BHP Billiton Brasil, a subsidiary of BHP Group Limited, and Vale. Each of BHP Brasil and Vale holds 50% of Samarco.

The groups said they filed their defence and a contribution claim against Vale in connection with the English court proceedings as they were not named in the class action.

The contribution claim is a necessary procedural step given that Vale was not included as a defendant in the English proceedings, they said.

In the defence the groups filed, they deny the claims in their entirety.

“The contribution claim contends that if the defence of BHP Group Limited and BHP Group (UK) Limited is not successful and they are ordered to pay damages to the claimants in the English proceedings, Vale should contribute to any amount payable,” the groups said.

The English High Court is expected to hear the contribution claim together with the main English proceedings.

BHP said it would continue to defend the English proceedings, which it believes are unnecessary, because they duplicate matters already covered by the existing and ongoing work of the Renova Foundation and legal proceedings in Brazil.

BHP Brasil said it remained committed to continue working with Samarco and Vale to support the local remediation efforts in Brazil through the Renova Foundation.

“Those efforts have already provided about $2.3 billion (R40bn) in compensation and direct financial aid in relation to the dam failure to 388 000 people to June 30, 2022,” BHP said.

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