BHP prepares for fresh battle against $6.6 billion Brazil dam lawsuit

By Kirstin Ridley

LONDON – Anglo-Australian mining large BHP is making ready to battle a resurrected 5 billion pound ($6.6 billion) lawsuit in London’s Court docket of Enchantment subsequent week, launched by round 200,000 Brazilians over a devastating dam failure in 2015.

The declare, one of many largest in English authorized historical past, seeks to carry BHP to account for the catastrophe in English courts, emulating lawsuits introduced in London towards miner Vedanta and oil large Shell by villagers over alleged air pollution in Zambia and oil spills within the Niger delta respectively.

The Vedanta case has since settled.

The collapse of the Fundao dam, owned by the Samarco enterprise between BHP and Brazilian iron ore mining large Vale, ranks as Brazil’s worst environmental catastrophe.

Nineteen had been killed and villages obliterated as a torrent of greater than 40 million cubic metres of mining waste swept into the Doce river and Atlantic Ocean over 650 km (400 miles) away.

Tom Goodhead, a managing accomplice at legislation agency PGMBM, which is bringing the declare on behalf of people – together with indigenous individuals – companies, church buildings, organisations and municipalities, instructed Reuters the staff was “very assured”.

About 120,000 claimants had been to walk-in centres in Brazil to replace their particulars in current months, he stated, and one other potential 100,000 new purchasers needed to hitch.

BHP, the world’s largest mining firm by market worth, has labelled the case pointless and wasteful, saying it duplicates proceedings in Brazil and the work of the Renova Basis, an entity created by the corporate and its Brazilian companions to handle reparations and repairs.

The corporate says it's totally dedicated to “doing the correct factor” and has paid almost 9 billion reais ($1.89 billion) in compensation and direct monetary help to over 360,000 individuals and could have spent roughly 30 billion reais on reparation and compensation programmes by year-end.

Claimant legal professionals argue that the majority purchasers haven't introduced proceedings in Brazil or sought compensation that excludes them from English proceedings and that Brazilian litigation is so prolonged it can not present full redress in a sensible timeframe.

However Goodhead conceded the case had been a rollercoaster.

It was blocked by the English Excessive Court docket in 2020 and, one 12 months later, by the Court docket of Enchantment, which initially agreed it could be “irredeemably unmanageable”.

However after a last-ditch oral listening to, Court docket of Enchantment judges final July made a uncommon U-turn, stating the case had a “actual prospect of success”.

The five-day listening to, which begins on Monday, will assist set up whether or not the case will be heard in Britain, though the judgment is predicted to be reserved – and the case may very well be appealed to the Supreme Court docket.

Additional trials will decide legal responsibility and quantify damages within the absence of any settlement.

($1 = 0.7623 kilos)

($1 = 4.7704 reais)

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