BHP loses bid to appeal Brazil dam disaster ruling

BHP (ASX, NYSE, LSE: BHP) cannot appeal a UK court ruling that found the world’s largest miner liable for Brazil’s deadliest environmental disaster, tightening pressure ahead of a damages trial tied to the 2015 Fundão dam collapse.

London’s Court of Appeal ruled Wednesday there was “ample evidence” supporting a previous High Court decision that held BHP legally responsible under Brazilian law for the disaster at the Samarco iron ore operation jointly owned by BHP and Vale (NYSE: VALE). The Court of Appeal rejected BHP’s argument that the trial judge failed to properly consider the company’s submissions.

The collapse of the Fundão tailings dam in Mariana, southeastern Brazil, unleashed a torrent of toxic sludge that killed 19 people, displaced thousands, destroyed forests and contaminated the Doce River along hundreds of kilometres. 

The High Court first ruled in November that BHP was liable for the collapse, before rejecting the company’s request for permission to appeal in January.

“At the London trial, claimants argued BHP had spent years trying to avoid responsibility for the disaster,” Tom Goodhead, chief executive of claimant law firm Pogust Goodhead, said in a statement. “Today’s ruling is another victory for the victims and a major setback for BHP.”

Two-year trial and counting

At the trial, which began in 2024, lawyers representing hundreds of thousands of Brazilians and other claimants accused BHP of attempting to sidestep accountability. The miner argued the UK proceedings duplicated ongoing legal actions, compensation efforts and environmental repair programs already under way in Brazil.

During the first week of the London proceedings, Brazil signed a 170-billion-real ($34.6 billion) compensation agreement with BHP, Vale and Samarco tied to the dam failure. 

BHP said Wednesday it remained confident that remediation work completed since 2015 and the Brazil settlement “provide the quickest and most efficient solution” for those affected.

The miner also said about 240,000 claimants, representing roughly 40% of the claimant group, had already received compensation in Brazil and would discontinue their UK claims.

The lawsuit is among the largest environmental cases ever heard in the UK and could expose BHP to billions more in damages. A second stage of the trial to determine compensation for affected communities, businesses and municipalities is scheduled to begin in April 2027.