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BHP faces $47 billion UK lawsuit over Brazilian dam collapse
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BHP faces $47 billion UK lawsuit over Brazilian dam collapse
Oct 20, 2024 5:31 PM

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Tailings dam collapsed in November 2015

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Killed 19 people and left hundreds homeless

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BHP contests liability in London case

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High Court hearing to last up to 12 weeks

By Sam Tobin

LONDON, Oct 21 (Reuters) - A hearing in a lawsuit

against BHP over Brazil's worst environmental disaster,

the 2015 collapse of the Mariana dam, will begin at London's

High Court on Monday, with claimants seeking up to 36 billion

pounds ($47 billion) in damages.

More than 600,000 Brazilians, 46 local governments, and

around 2,000 businesses are suing BHP over the collapse of the

dam in southeastern Brazil, which was owned and operated by BHP

and Vale's Samarco joint venture.

The collapse of the dam, which held mining waste known as

tailings, unleashed a toxic wave that killed 19 people, left

thousands homeless, flooded forests, and polluted the length of

the Doce River - which is considered to be sacred by the Krenak

indigenous tribe.

BHP, the world's biggest miner by market value, is

contesting liability and says the London lawsuit, one of the

largest in English legal history, duplicates legal proceedings

and reparation and repair programmes in Brazil.

It says nearly $8 billion has already been paid to those

affected by the disaster through the Renova Foundation, which

was established in 2016.

The Brazilian government is discussing a nearly $30 billion

compensation deal with BHP, Vale and Samarco, the miners said on

Friday.

Pogust Goodhead, the law firm representing the claimants,

said in a statement the English lawsuit is "the only way to

truly hold BHP accountable".

"The English claim has pushed BHP into finally accepting

they needed to do more in Brazil but this proposed deal only

goes half way at best," Pogust Goodhead CEO Tom Goodhead said.

BHP said in a statement that it is "working collectively

with the Brazilian authorities and others to seek solutions to

finalise a fair and comprehensive compensation and

rehabilitation process".

The London High Court hearing will last up to 12 weeks and

will consider whether BHP is liable to the claimants under

Brazilian environmental law.

It will also consider whether the Brazilian municipalities

involved in the case are permitted to bring legal action and the

impact of any agreements reached with BHP by claimants involved

in the English lawsuit.

The suit has had a convoluted path towards trial: it was

thrown out in 2020 before the Court of Appeal ruled it could

proceed.

BHP and Vale also briefly fought in the English courts over

their potential liability, before reaching an agreement in July

to split the bill for any damages that may be awarded.

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