Mining giants BHP and Vale have agreed to a nearly $30 billion (£23 billion) compensation deal with the Brazilian government for the 2015 Mariana dam collapse, which stands as Brazil’s most devastating environmental disaster. The agreement was signed on Friday in the presence of Brazilian President Luis Inacio Lula da Silva.
The dam’s catastrophic failure, operated by Samarco—a joint venture between Vale and BHP—released a massive wave of toxic waste and mud that engulfed towns, rivers, and forests. The disaster claimed 19 lives, displaced hundreds, and heavily polluted the region’s waterways.
President Lula, at the signing, stated, “I hope the mining companies have learned their lesson; it would have cost them less to prevent the disaster.”
In response to the tragedy, BHP and Vale set up a foundation to compensate victims and fund repairs, which has already spent billions on rebuilding efforts, including constructing a new town to replace one that was destroyed. However, many affected residents remain dissatisfied, claiming they have not received adequate support to rebuild their lives nearly nine years after the disaster.
In addition to facing legal challenges in Brazil, BHP is dealing with a lawsuit from over 620,000 claimants in the UK, where the company was previously headquartered. The case, which began this week, seeks around $47 billion in damages, with the initial phase focusing on whether BHP, as the parent company, is liable. Simultaneously, roughly 70,000 claimants are pursuing legal action against Vale in The Netherlands.
