The High Court in London has ruled that BHP Group is legally liable for the collapse of the Fundão tailings dam in Brazil in 2015. The decision, issued by Mrs Justice O’Farrell in the Technology and Construction Court, concludes that BHP’s UK and Australian parent companies bear responsibility for environmental and community damage linked to the failure.
The case was brought by the Municipality of Mariana and other Brazilian claimants. More than 600,000 people are included in the wider group action. The dam, operated by Samarco — a joint venture between BHP and Vale — released around 40 million cubic metres of tailings when it failed, causing loss of life, destroying entire communities, and contaminating the Doce River system.
The court found BHP strictly liable under Brazilian environmental law, determining that the company exercised control over Samarco’s operations, had assumed responsibility for risk management, and benefited commercially from the activities that led to the collapse. The judge also found fault-based liability, concluding that the risk of failure was foreseeable and that BHP failed to act on warning signs, including known drainage issues.
BHP argued that compensation schemes established in Brazil should prevent parallel proceedings in the UK, but the court held that the English claims can proceed. The court also rejected BHP’s argument that the claims were time-barred.
The judgment addresses liability only. A separate phase will consider damages, with the claim valued at up to £36 billion. BHP has indicated it will seek to appeal.
