In a groundbreaking agreement, mining giants BHP and Vale have consented to a settlement nearing $30 billion (£23 billion) with the Brazilian government in connection with the catastrophic Mariana dam collapse of 2015. The signing event, attended by Brazilian President Luis Inacio Lula da Silva, took place on Friday, marking the culmination of years of negotiations following what is considered the worst environmental disaster in Brazil's history.
The dam failure unleashed a torrent of toxic waste and mud, flooding various towns, rivers, and forests, ultimately claiming the lives of 19 individuals and leaving countless others without homes. The resultant ecological damage poisoned waterways and disrupted local ecosystems. President Lula remarked on the event, stating, "I hope the mining companies have learned their lesson; it would have cost them less to prevent the disaster."
The dam, which was operated by Samarco—a joint venture between Vale and BHP—has seen the companies establish a foundation dedicated to compensation efforts, which has already funneled billions of dollars into restoration projects, including the construction of a new town to replace one that was destroyed.
Despite these efforts, many locals continue to express dissatisfaction with the timeline and extent of reparations nearly nine years post-collapse, arguing they have not received adequate assistance to rebuild their lives. In light of this, more than 620,000 individuals have initiated legal action against BHP in the UK, where the company was headquartered at that time. This civil trial, which commenced earlier this week, is seeking approximately $47 billion in damages, with the initial phase intended to assess the company’s liability as a parent organization. Additionally, around 70,000 individuals are pursuing claims against Vale in The Netherlands.
Both BHP and Vale contend that these international legal actions are unwarranted and that they replicate ongoing legal proceedings within Brazil. Reports suggest that some Mariana residents pursued UK legal action due to frustrations with the lengthy Brazilian judicial process, suspecting that the recent international focus could expedite a resolution.
In a previous agreement in 2016, the companies pledged roughly $3.5 billion in compensation, but a reevaluation of the situation occurred in 2021, prompted by sluggish advances within Brazil’s justice framework. The recent settlement aims to fulfill the companies’ past and future obligations to support the communities and ecosystems impacted by the disaster, allocating 100 billion reais ($17.5 billion; £13.5 billion) to local authorities over the course of two decades, while setting aside an additional 32 billion reais for victim compensation and environmental restoration efforts. The remaining amount of 38 billion reais reflects compensation already distributed by the companies.
