LONDON, March 16 (Reuters) - BHP on Monday won

its bid to throw out a contempt of court case in Britain over

the funding of litigation to try to prevent some Brazilian

municipalities suing the mining giant in London over one of

Brazil's worst environmental disasters.

The judgment comes as BHP waits for a decision on whether it can

challenge a ruling that it is liable for the 2015 collapse of

the Mariana dam in southeastern Brazil that was owned and

operated by BHP and Vale's Samarco joint venture.

Lawyers representing the claimants suing BHP - which include

hundreds of thousands of Brazilians, as well as local

governments and businesses - said the company had funded

Brazilian litigation to stop the municipalities suing in London.

They alleged that, by procuring and funding a lawsuit by

Brazilian mining lobby group Ibram, BHP was in contempt of court

by interfering with the administration of justice.

BHP unsuccessfully tried to throw the case out last year, but

the Court of Appeal overturned that decision on Monday, bringing

the contempt proceedings to an end.

BHP welcomed the ruling, while the claimants' lawyers said

their focus was on the underlying litigation over the collapse

of the dam.

Last week, BHP sought permission to appeal against the ruling

that it was liable for the disaster, which came after a mammoth

trial that began in October and finished in March.

Ahead of a second trial due to begin in April 2027 to decide

what damages are owed, BHP argued it should be allowed to

challenge the High Court's decision.

The Court of Appeal is expected to give its ruling on BHP's

application for permission to appeal in the coming weeks.

BHP has always denied liability and says the case duplicates

legal proceedings and reparation and repair programs in Brazil.

In the trial's first week, Brazil signed a 170 billion reais

($31.94 billion) compensation agreement with BHP, Vale and

Samarco.

($1 = 5.3232 reais)