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LONDON - The English High Court has ruled that BHP Group Limited is liable under Brazilian law for the 2015 Fundão dam failure in Brazil, with damages to be determined in future trials expected to conclude by 2029, according to a company press release statement.
BHP plans to appeal the decision while continuing to defend against the UK group action, which involves over 600,000 claimants seeking damages related to the disaster.
The court found BHP liable as a "polluter" under Brazilian environmental law and at fault under the Brazilian civil code, but rejected arguments that the company is liable under Brazilian corporate law. The ruling specifically addresses events that occurred before November 2015.
Importantly, the court upheld the validity of waivers and releases signed by approximately 240,000 claimants who have already received compensation in Brazil, which BHP says should reduce the size and value of the UK claims.
The Fundão dam was owned and operated by Samarco, a joint venture between BHP Billiton Brasil Ltda and Vale S.A., with each holding a 50% stake.
Since 2015, BHP Brasil, Vale and Samarco have provided $13.4 billion for reparation and compensation in Brazil. In October 2024, the companies entered into a $32 billion settlement agreement with Brazilian authorities for claims related to the disaster.
BHP maintains that the UK group action duplicates remediation and compensation already available in Brazil. The company has updated its provision to $5.5 billion as of October 31, 2025, reflecting recent expenditures and an assessment of the UK court decision's impact.
Expected cash outflows remain largely aligned with the $2.2 billion for FY2026 and $0.5 billion for FY2027 previously announced, with approximately $1 billion already spent in FY2026.
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