BHP and Vale Sign $30 Billion Settlement with Brazil Over 2015 Mariana Dam Disaster
In a landmark settlement, mining giants BHP and Vale have agreed to pay nearly $30 billion in compensation to the Brazilian government for the 2015 Mariana dam collapse, a tragedy that stands as Brazil’s worst environmental disaster. Brazilian President Luis Inacio Lula da Silva presided over the signing of the settlement on Friday, emphasizing the need for corporate accountability in preventing such disasters.
The collapse of the Samarco dam, owned jointly by Vale and BHP, unleashed a devastating wave of toxic mud that inundated nearby towns, forests, and rivers, killing 19 people, displacing hundreds, and severely polluting the region’s water sources. Reflecting on the disaster, President Lula said, “I hope the mining companies have learned their lesson; it would have cost them less to prevent the disaster.”
Since the incident, BHP and Vale have established a foundation for relief efforts, including the construction of a new town to replace one that was destroyed. However, local communities have continued to voice frustration, arguing that compensation has been insufficient to restore their lives, even nine years later.
In parallel with the Brazilian settlement, legal battles continue abroad. Over 620,000 individuals have initiated a civil lawsuit against BHP in the UK, seeking $47 billion in damages. This case, launched recently, aims to establish BHP’s accountability as the parent company at the time. Meanwhile, about 70,000 plaintiffs have also filed a lawsuit against Vale in the Netherlands. Both companies contest these overseas actions, asserting that they replicate ongoing proceedings in Brazil.
The settlement reached in Brazil outlines BHP and Vale’s commitment to support affected people, communities, and ecosystems. Under the agreement, they will pay approximately 100 billion reais ($17.5 billion) to local authorities over 20 years, 32 billion reais ($5.5 billion) toward victim compensation and resettlement, and acknowledge an additional 38 billion reais ($7 billion) already spent on previous reparations.
This agreement marks a significant step toward recovery, but survivors and their advocates remain vigilant, noting that the Brazilian judicial process has been slow to fully address their claims. As legal actions progress abroad, the international scrutiny may continue to drive accountability for the long-lasting impacts of the disaster.
