Lawyers representing the victims of Brazil’s worst environmental disaster are determined to continue their legal battle in the UK, even after a $31 billion settlement was announced between the mining giant BHP and Brazilian authorities. This announcement, made by BHP’s CEO Mike Henry, follows three years of negotiations aimed at compensating those impacted by the catastrophic collapse of the Fundão dam in 2015.
On November 5, 2015, the dam near Mariana, Brazil, collapsed, resulting in the tragic loss of 19 lives and unleashing a torrent of toxic waste that devastated the small community of Bento Rodrigues and affected surrounding areas.
While BHP characterized the recent settlement as a “full and final” resolution, the legal representatives for the largest group action in UK history—including 620,000 individuals, 46 Brazilian municipalities, 2,000 businesses, and 65 faith-based organizations—have reiterated their intention to seek up to £36 billion from the company in a high court trial that commenced on Monday.
Tom Goodhead, global managing partner and CEO of Pogust Goodhead, remarked that the agreement with Brazilian authorities emphasizes why the UK proceedings are crucial. He noted that the victims were not consulted regarding the settlement, and that the reparations would be doled out over a span of 20 years. Goodhead stated, “This is just the beginning of an ongoing struggle for justice and adequate compensation for Brazil’s worst environmental disaster.”
He further emphasized, “Our legal case is essential for holding BHP accountable and establishing a precedent. It challenges multinational corporations to recognize their responsibilities to the communities in which they operate.” Goodhead drew a parallel to the Post Office scandal in the UK, noting that BHP previously made insultingly low offers—some as little as $200—to those whose lives were irrevocably altered by the disaster.
During the initial week of the high court trial, BHP contended that it, as a co-owner of the dam with Brazilian mining company Vale, bears no liability for the damages and argued that the municipalities involved cannot pursue their claims in English courts.
Despite this, BHP stated that its $31 billion settlement reflects its commitment to “doing what’s right” for those affected. The settlement funds will be disbursed in installments over 20 years to various stakeholders, including public authorities, relevant municipalities, Indigenous peoples, and traditional communities.
Goodhead added, “BHP must be transparent with its investors regarding the extensive liabilities associated with this disaster, which go well beyond the agreement reached with Brazilian authorities. The English courts have affirmed that our trial can proceed, irrespective of developments in Brazil. We are steadfast in our mission to secure fair and full compensation for the victims’ suffering.”
