Brazilian court clears BHP, Vale, and Samarco of charges in 2015 dam disaster

A Brazilian court on Thursday cleared BHP (NYSE: BHP), Vale (NYSE: VALE), and their Brazilian joint venture Samarco, of responsibility over the Fundão dam collapse that caused the country’s worst ever environmental disaster.

The dam burst on Nov. 5, 2015, releasing 40 million cubic metres of mining waste, which devastated communities, polluted the Rio Doce and its tributaries, and eventually reached the Atlantic Ocean. It killed 19 people.

According to the court’s decision, however, the federal prosecutor did not show that the parties’ actions caused the disaster.

“The documents, reports, and witness testimonies examined did not identify specific individual actions that directly and decisively contributed to the dam’s collapse,” the court said in its ruling.

The case was tried in criminal court, though defendants also faced separate civil claims for environmental damages.

Among those acquitted was Ricardo Vescovi, the president of Samarco at the time of the disaster.

The prosecutor’s office has announced it will appeal the verdict.

BHP (NYSE: BHP; LSE: BHP; ASX: BHP) responded by stating that it remains “fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil” and will continue focusing on the long-term recovery of affected communities and the environment.

In October 2016, the federal prosecutor’s office indicted 22 individuals and four companies (Samarco, Vale, BHP, and VogBR) on charges that included qualified homicide, flooding, building collapse, serious bodily injury, and environmental crimes.

By 2019, homicide charges were dropped when the court ruled that the deaths were caused by the flooding itself, and several environmental charges have since expired due to the statute of limitations.

Last month, the companies reached a final settlement of 170 billion reais ($29.93 billion) with Brazilian authorities for reparations related to the dam failure.

However, BHP continues to face a separate lawsuit in the United Kingdom, where it could be liable for up to US$47 billion in damages. This lawsuit includes more than 600,000 Brazilian citizens, 46 municipalities, and 2,000 businesses. In July, BHP and Vale agreed to share equally the cost of any U.K. damages awarded.

In an email to MINING.com, Samarco stated that the decision by the Brazilian Federal Court reflects the defence and facts presented in the case and confirms that the company has always acted in accordance with current legislation.

Vale said it will not comment on the decision.