A British court has delivered a landmark ruling holding Australian mining giant BHP legally responsible for one of Brazil's worst environmental disasters, potentially opening the door for billions of pounds in compensation claims.
The Tragic 2015 Disaster
The catastrophic dam collapse occurred in 2015 at an iron-ore mine operated by Samarco, a company jointly owned by BHP and Brazilian miner Vale. The incident claimed 19 lives and released a massive wave of thick, toxic mud that devastated villages, agricultural fields, rainforest areas, rivers, and ultimately reached the ocean.
In its ruling on Friday, the High Court in London stated that BHP is strictly liable as polluters for the damage caused by the collapse. This decision follows an extensive trial that ran from October 2024 to March 2025, marking a significant victory for the hundreds of thousands of claimants seeking justice.
Legal Battle and Compensation Claims
The victims initially filed the UK legal action against BHP in 2018, choosing to pursue the case in Britain because the mining company maintained one of its global headquarters there at the time of the disaster. The court has now begun preparations for the second phase of the case, which will determine the actual amount of damages and compensation.
During the trial, claimants' lawyers presented evidence showing that BHP was aware toxic sludge was accumulating at the facility in Minas Gerais state at rates that far exceeded annual limits. This buildup, they argued, directly contributed to the disaster that has been described as one of Brazil's most severe environmental catastrophes.
Conflicting Compensation Agreements
BHP has announced its intention to appeal the ruling, maintaining that a compensation agreement reached last year in Brazil - valued at approximately $31 billion - should provide adequate resolution. However, the majority of the 620,000 claimants, including 31 municipalities, argue this Brazilian settlement doesn't sufficiently cover their losses.
Instead, claimants are seeking around £36 billion ($47 billion) in compensation through the UK legal action, according to estimates from law firm Pogust Goodhead. The city of Mariana, among the hardest-hit areas, is seeking tens of billions of Brazilian reais specifically for the devastation it suffered.
The compensation amount will be decided in a subsequent trial scheduled for October 2026. Meanwhile, another similar civil lawsuit has been ongoing since 2024 in the Netherlands, indicating the global reach of this environmental disaster's legal consequences.
This ruling represents a significant development in holding multinational corporations accountable for environmental damage across international borders, setting a potential precedent for future cases involving cross-border environmental disasters.
