Brazilian Court Clears BHP, Vale, and Samarco in Fundão Dam Disaster

A Brazilian court has cleared BHP, Vale, and their joint venture Samarco of responsibility for the catastrophic Fundão dam collapse in 2015. This tragic event is deemed to be one of the Brazil's worst environmental and industrial disasters. It had resulted in the loss of 19 lives and widespread devastation. The Rio Doce River and its tributaries were also severely polluted and damaged.

After reviewing the documents, reports, and witness testimonies, the court concluded on November 14 that there was insufficient evidence to establish specific individual actions directly contributing to the dam's failure. Ricardo Vescovi, who was Samarco's president when the dam collapsed, has also been cleared of all charges by the court.

The Brazilian Federal Prosecutor's Office (MPF) has expressed its intent to appeal the ruling, asserting that it will meticulously review the court's decision.

In response to the verdict, BHP reaffirmed its commitment to ongoing remediation and compensation efforts in Brazil. The company emphasized its focus on the long-term recovery of affected communities and the environment.

Notably, while the criminal case has concluded, separate civil claims for environmental damages are still pending. In 2016, the MPF indicted multiple individuals and companies, including Samarco, Vale, BHP, and VogBR, on various charges related to the disaster. However, some charges have been dropped or expired due to the statute of limitations over the time.

Earlier, in a bid to resolve the case, BHP, Vale, and Samarco had reached a final settlement of 170 billion reais ($29.93 billion) with Brazilian authorities in October 2024. This settlement covered reparations for damages caused by the dam failure.

The settlement was spread over 20 years and comprised several key components. R$100 billion (US$18.0 billion) was to be paid in instalments to the Brazilian government, municipalities, and Indigenous communities over the next two decades. Another R$32 billion (US$5.8 billion) was earmarked for additional performance obligations to be fulfilled by Samarco.

However, BHP still faces a separate legal case in the UK, where it could be ordered to pay up to $47 billion in damages. This lawsuit involves a large number of Brazilian citizens, municipalities, and businesses affected by the disaster. BHP and Vale have agreed to share any potential UK damages equally.

The Fundão dam collapse remains a stark reminder of the devastating consequences of these industrial accidents. As the legal battles continue, the world is closely monitoring the situation, hoping for justice for the victims and a clean-up of the environment.