By Blessing Nweke
A federal judge in Brazil has ruled that mining giants BHP, Vale, and their Samarco joint venture must collectively pay 47.6 billion reais ($9.67 billion) in damages for the catastrophic dam burst in 2015. The collapse of the Fundão dam led to a deadly mudslide, claiming the lives of 19 individuals and causing extensive pollution in the Rio Doce River.
Judge Vinicius Cobucci’s decision stems from a civil action filed by state and federal public prosecutors. The funds are mandated to be placed in a state fund, allocated for projects and initiatives in the affected region. The ruling does permit the companies to appeal.
Samarco, a joint venture split equally between BHP and Vale, now faces potential financial repercussions, although the specific amounts each company must pay remain unclear. The companies have the option to contest the judge’s decision.
The dam failure, deemed one of Brazil’s worst environmental disasters, not only resulted in loss of life but also displaced 700 people. The mudslide, with its toxic contents, obliterated the village of Bento Rodrigues and contaminated the Rio Doce River, affecting wildlife and endangering the drinking water of hundreds of thousands of residents.
A report from 2016, commissioned by BHP and Vale, attributed the dam collapse to design flaws. Changes made to the dam’s design between 2011 and 2012, reducing water drainage efficiency, were identified as the primary cause. The dam walls, composed of a mixture of sand-like particles and clay-like silt, experienced “liquefaction” – a transformation from a solid to a liquid state. The report also mentioned that a small earthquake on the day of the collapse might have accelerated the failure.
The disaster prompted a reevaluation of safety protocols within the mining industry, emphasizing the critical need for robust preventive measures. The legal consequences for BHP, Vale, and Samarco extend beyond Brazil, as they face a class-action lawsuit in the UK with over 700,000 claimants.
Despite the significant ruling, Vale stated that it had not been informed about the decision, and BHP and Samarco had yet to respond to requests for comment from reporters. As of December of the previous year, the Renova Foundation, used for compensation payments, had disbursed 34.7 billion reais. The companies now have the option to challenge the verdict, shaping the trajectory of this long-standing legal battle.
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