BHP found liable for Brazil dam disaster that killed 19 people

(Sharecast News) - Mining giant BHP has been found liable for the 2015 collapse of the Fundao dam in Mariana, Brazil that killed 19 people and devastated the surrounding countryside. More than 620,000 people are claiming up to £36bn in compensation from BHP and Brazilian miner Vale, joint owners of the Samarco iron ore operation in the region.

Sludge from the tailings dam inundated the region, polluting the land and waterways.

"The risk of collapse of the dam was foreseeable," wrote Justice Finola O'Farrell in her judgement.

She added that by August 2014, BHP knew, or should have known that the internal drainage of the dam "was inadequate to prevent saturation of the sand tailings" and that "the collapse could have been averted".

However, it failed to implement adequate remedial measures and instead continued to raise the height of the dam, causing the collapse.

A High Court trial to decide compensation is scheduled for next October 2026. BHP said it would appeal the initial ruling on liability.

"Today's ruling delivers long-overdue justice to the thousands whose lives were torn apart," said Alicia Alinia, chief executive of law firm Pogust Goodhead which is representing the claimants.

"It sends an unmistakable message to multinational companies around the world: You cannot disregard your duty of care and walk away from the devastation you caused."

Reporting by Frank Prenesti for Sharecast.com