Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

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

Share this article

Related Sharecast Articles

Aeorema Communications shares jump on guidance upgrade
(Sharecast News) - Shares in Aeorema Communications jumped on Tuesday after the AIM-listed strategic comms firm hiked its profit guidance for the full year following a strong start to the second half.
Citi lifts price target on Vodafone, maintains 'neutral' rating
(Sharecast News) - Citi lifted its price target on Vodafone on Tuesday to 127p from 110p as it said scope for positive news was stopping it from taking a more cautious stance.
MJ Gleeson swings to full-year loss, cuts dividend
(Sharecast News) - MJ Gleeson said on Tuesday that it swung to a full-year pre-tax loss in a 'subdued' market, as it took a hit from exceptional costs of £13.6m.
Deutsche Bank upgrades Astrazeneca to 'hold'
(Sharecast News) - Deutsche Bank upgraded Astrazeneca from 'sell' to 'hold' on Tuesday and nudged its price target up from 11,500p to 11,700p, saying the risk‑reward scenario had shifted following last week's negative SERENA-4 readout and a period of underperformance against European large‑cap peers.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.