Brazilian states return to court to double dam collapse compensation to $19.5bn
A Brazilian court has been asked to more than double compensation payments from mining companies Vale, BHP and their joint venture Samarco to two of the country’s states damaged when the Fundão tailings dam burst in 2015.
According to Reuters, which has seen new legal documents, Minas Gerais and Espirito Santo have petitioned the court to order a payment of R$100bn ($19.5bn), plus interest and a late payment penalty.
It follows a preliminary decision by a Brazilian federal court in January 2024, which proposed a payment of R$47.6bn in damage from toxic mining waste across 39 local towns that killed 19 people and polluted the Doce River.
At the end of April, BHP confirmed press reports that it had proposed a R$127bn settlement ($25.7bn) with Samarco and Vale. This included a R$72bn cash payment “over an extended period of time well in excess of a decade” to the federal government, the two states and affected municipalities. It said R$37bn of the total has already been invested in remediation and compensation payments while the remainder would be paid into a foundation.
Reuters reported that the firms’ proposal was rejected.
BHP Brasil has set aside $6.5bn for its share of the compensation. It said negotiations are ongoing.
