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The Lawsuit Opened By More Than 200 Thousand Brazilians Seeks To Raise A Total Of US$ 6 Billion For Damages Caused By BHP To The Population Of Minas Gerais With The Breach Of The Fundão Dam, Which Caused The Mariana Disaster Several Years Ago.
During last Friday (07/08), the mining company BHP lost its appeal in the English court against the US$ 6 billion lawsuit opened by more than 200 thousand Brazilians against the company. The lawsuit aims to repair the damages from the company’s irresponsibility regarding the safety of the Fundão dam, which broke in 2015 and caused one of the largest disasters in Brazilian mining history in Mariana, Minas Gerais.
Court Of Appeal Overturned BHP’s Action And Decided That The Lawsuit By Brazilians Against The Miner Can Proceed In English Courts
BHP has just lost its appeal against the damages lawsuit filed against it by a total of 200 thousand Brazilians, who are seeking a total of US$ 6 billion for the company’s actions regarding the Fundão dam, which broke in 2015 and caused the Mariana disaster in the state of Minas Gerais. Thus, the company had filed an appeal in the English court to prevent the lawsuit from moving forward.
However, the Court of Appeal overturned previous rulings on Friday and decided that the class action could proceed in English courts, being one of the largest ever seen by the country’s justice system. Thus, Tom Goodhead, partner at the PGMBM law firm representing the Brazilians in the lawsuit, celebrated BHP’s loss in its appeal and said that this is the moment when large companies need to be held accountable for their actions.
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The breach of the Fundão dam killed 19 people by triggering the Mariana disaster in Minas Gerais, when more than 40 million cubic meters of mud and mining waste hit villages and reached the Atlantic Ocean during 2015.
The management of the dam was by Samarco, a joint venture between BHP and Vale, and the lawsuit seeks to hold foreign companies like BHP accountable for their actions in their own countries, thus attributing a share of US$ 6 billion for the repair of the damages caused by the disaster.
Miner Responds To The Loss Of The Action Against The Damages Lawsuit And Says That This Is An Unnecessary Move By The English Justice
After the announcement of its loss in the appeal against the US$ 6 billion lawsuit opened against BHP, the company stated that the fight in the English courts is unnecessary, since investments for damage repair in the country already amount to about R$ 30 billion (US$ 5.6 billion), including expected expenses until the end of this year. Thus, BHP believes that the amounts applied in the country already serve as its reparative actions regarding the breach of the Fundão dam.
Despite this, the representatives of the Brazilians in the lawsuit stated that it is essential for the company to be held accountable for the Mariana disaster under English law and that the completion of investments in Brazil will take a long time, as the Brazilian justice system is slow in its processes. Therefore, it is essential for the lawsuit against BHP to be finalized in the English courts for a quicker resolution of this amount.
Finally, BHP stated in a note: “We will review the decision and consider our next steps, which includes the possibility of seeking permission to appeal to the Supreme Court of the United Kingdom. BHP will continue to defend itself in the action in the UK, which we believe is unnecessary as it duplicates issues already covered by the work of the Renova Foundation.”
