English court holds BHP responsible for Fundão dam disaster in Mariana

Historic UK Court Ruling on Samarco Disaster Recognizes BHP’s Liability, But Compensation Details Remain Unclear

Samarco, a joint venture between Brazilian miner Vale and British-Australian company BHP, has faced a landmark ruling from a UK court. Although the exact compensation amount to be paid has not yet been determined, the decision has been hailed as a "historic victory" by the Movement of People Affected by Dams (MAB), emphasizing that it brings international clarity to long-standing liability debates that Brazil’s judiciary has delayed for years.

Background of the Disaster
On November 5, 2015, the Fundão dam, owned by Samarco in Mariana, Minas Gerais, collapsed, releasing millions of cubic meters of mining waste into the environment. This caused massive ecological destruction along the Rio Doce River, severely impacting hundreds of communities’ lives, cultures, economic activities, and natural resources in the region. Despite ten years having passed since the disaster as of 2025, compensation and accountability processes remain unresolved.

Key Points of the UK High Court Decision

1. No Statute of Limitations Bar Applied:
   The court rejected BHP’s defense that the case was time-barred, noting that the criminal investigation in Brazil had suspended the limitation period until September 2024—and for some claimants, this could be extended further. This confirmed that victims’ rights to seek justice remain valid.

2. Brazilian Municipalities Can Continue Legal Action:
   Currently, 31 Brazilian municipalities are parties to the UK case. While Brazil’s Federal Supreme Court (STF) has questioned the constitutionality of municipalities pursuing lawsuits abroad, the UK court upheld their legitimacy to participate in the process.

3. Waivers of Compensation to Be Examined Individually:
   The court ruled that waivers signed by individuals participating in previous compensation programs organized by the Renova Foundation or under the New Agreement (such as PID, PIM) would not be automatically accepted. Each settlement will be reviewed on a case-by-case basis.

Additionally, the court determined that consumer protection laws do not apply to these agreements—contradicting previous interpretations under Brazilian law related to statute of limitations and contract clauses.

A Landmark Decision, But No Immediate Payments
The ruling marks a crucial milestone in formally recognizing BHP’s international legal responsibility. However, the court did not guarantee immediate compensation payments to victims. The judgment is open to appeal, and BHP is expected to file objections.

Samarco’s Response
Samarco acknowledged the UK court ruling but stressed that it contains no provisions regarding compensation amounts, payment schedules, or urgent disbursements. The company emphasized that all damages must be proven. It also recalled that the New Agreement, approved by Brazil’s Federal Supreme Court on November 6, 2024, remains valid and that BHP intends to challenge the ruling.

Implications
This decision is seen as a precedent-setting moment for environmental accountability and the application of international law within the global mining industry.