Push for BHP boss to give evidence in Brazil dam disaster

The case before the High Court in London will try to hold BHP financially liable for the damage caused by the Fundao tailings dam bursting in 2015 at the Samarco Mariana mine complex in Brazil, a joint venture BHP owned alongside Brazilian miner Vale.

The law firm also wants to put the mining giant’s boss, Mike Henry, and other senior executives on the stand. “It would involve likely evidence from very senior BHP executives, including potentially the current CEO,” Goodhead said.

The miner’s financial statements show it set aside a provision of $US3.12 billion to deal with claims related to the Samarco disaster. The company said in March: “Full details of the claims have not been received and the amount of damages sought in the English proceedings remains unspecified.”

The dam collapse is considered to be Brazil’s worst environmental disaster. It killed 19 people and spewed millions of tonnes of toxic waste into almost 700 kilometres of waterways, destroying businesses and the livelihoods of thousands of individuals, and causing lasting ecological damage.

Goodhead maintains BHP’s liability is growing each year, the result of a 12 per cent interest rate applied to loss and damages under Brazil’s law. “It is an extraordinary level of liability,” he said.

The case is being financed by third-party litigation funders to the tune of £70 million ($131 million). If it goes to trial, it’s expected to cost up to £250 million to litigate.

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After the dam collapse, Brazilian authorities charged eight BHP executives with criminal offences and the company’s Brazilian arm with environmental crimes. A successful class action in Brazil won a 20 billion real ($6 billion) settlement and another is under way seeking 155 billion reals.

“BHP Brazil continues to work closely with Samarco and Vale to support the reparation and compensation programs implemented by Renova Foundation under the supervision of the Brazilian courts,” a spokesperson said. The foundation was set up to administer $US6 billion in financial compensation and reparation.