BHP Cleared of Criminal Charges in 2015 Dam Disaster by Brazilian Court

BHP Group is awaiting a formal court ruling after reports indicated that its unit and other firms were cleared of criminal charges related to the 2015 Fundão dam collapse in Brazil.

BHP Group is currently awaiting a formal court ruling following reports that a Brazilian court has cleared its unit and other firms of criminal charges related to the catastrophic 2015 Fundão dam collapse. The disaster, which occurred at an iron ore mine owned by Samarco—a joint venture between BHP and Vale SA—resulted in 19 deaths, left hundreds homeless, and caused extensive environmental damage by polluting the Doce River.

The court's decision, as reported by media outlets, found insufficient evidence to establish a direct causal link between the companies and the dam failure. This ruling comes after the Brazilian Federal Prosecutor's Office filed criminal charges against Samarco, BHP, and Vale in 2016. Despite the criminal charges being dropped, BHP and Vale are still facing a civil lawsuit in the UK, which could potentially cost them $47 billion in damages.

BHP has stated that it will consider the implications of the court's decision once it has been officially served. Meanwhile, the company remains committed to supporting the long-term recovery of the affected communities and environment in Brazil. Vale, on the other hand, has not commented on the court's decision.

This development is separate from a $31.7 billion civil settlement agreement reached in October 2024, which addresses framework obligations and other claims related to the dam failure. The settlement is one of the largest of its kind for an environmental disaster, highlighting the significant impact of the dam collapse.

The court's ruling has been met with mixed reactions. While the companies have been cleared of criminal liability, the environmental and social repercussions of the disaster continue to be felt, with ongoing efforts to remediate the damage and compensate the victims.

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