UK Court Holds Mining Firm Responsible for Brazil’s Doce River Disaster
London – A UK court has found BHP, a major mining company, liable for the 2015 collapse of the Fundão dam in Brazil, triggering the country’s worst environmental disaster. The ruling, delivered on May 10, 2024, opens the door for thousands of Brazilians affected by the disaster to seek compensation in English courts. The collapse unleashed a torrent of toxic mud that devastated the Doce River, impacting communities across 20 municipalities and reaching the Atlantic Ocean.
The case, brought by claimants represented by Pogust Goodhead, centered on allegations that BHP failed to adequately ensure the safety of the dam. While the extent of compensation remains to be determined,the ruling establishes BHP’s responsibility for the widespread environmental and economic damage caused by the disaster. Approximately 40,000 Brazilians are seeking over £5 billion in damages.
The Fundão dam, owned by BHP Brasil and vale, ruptured on November 5, 2015, releasing approximately 40 million cubic meters of tailings – a slurry of waste material - into the Doce River. The resulting mudslide destroyed villages, contaminated water supplies, and decimated ecosystems. The disaster left hundreds dead or displaced and caused lasting harm to the livelihoods of communities dependent on the river.
During proceedings, accusations surfaced alleging that Pogust Goodhead had attempted to profit from the vulnerability of the Brazilian claimants. A Brazilian judge in Minas Gerais criticized ”allegedly abusive clauses” in the firm’s contracts, alleging “misleading advertising” given the “hypervulnerability of those affected.” Pogust Goodhead rejected the accusation as “without merit.” The judge also alleged “undue charging of fees” and “excessive” penalties for contract termination.
Former Brazilian ambassador to London and Washington, Rubens Barbosa, stated earlier this year that he believed the firm was spreading misleading details in Brazil and that bringing the case to London “hinders efforts to resolve the matter locally.” He added that “extremely vulnerable Brazilians were misled” by the contracts.
The ruling marks a notable victory for the claimants and sets a precedent for holding multinational corporations accountable for environmental disasters occurring in other countries. BHP has previously paid out settlements in Brazil, but this UK ruling allows for claims to be pursued under English law, perhaps leading to higher compensation awards.
