BHP Group (ASX:BHP) recently finalised a US$31.7bn settlement for the 2015 Samarco dam disaster, bringing resolution to a catastrophic event that has weighed heavily on the company for nearly a decade. The disaster occurred on 5 November 2015, when the Fundão tailings dam — operated by Samarco, a joint venture between BHP and Brazilian miner Vale — collapsed. The dam failure released 39.2 million cubic metres of mining waste into the Doce River, leading to the deaths of 19 people, extensive environmental damage, and the displacement of thousands in the Minas Gerais and Espírito Santo regions.
Investigations into the cause of the disaster revealed a combination of design flaws, insufficient monitoring, and changes in the dam's structure that compromised its stability. The failure of the dam led to widespread devastation, contaminating rivers, destroying homes, and impacting livelihoods. In the years since, BHP and Vale have faced legal actions and community pressure to repair the damage and compensate those affected.
The recently finalised settlement covers a broad range of reparations. BHP and Vale have already spent R$38bn (US$7.9bn) on remediation efforts, and the agreement requires an additional R$100bn (US$18bn) to be paid over the next two decades. Another R$32bn (US$5.8bn) is dedicated to long-term environmental and infrastructure recovery projects. A special allocation of US$1.4bn is aimed at aiding indigenous and traditional communities affected by the disaster.
Mike Henry, BHP’s CEO, acknowledged the tragedy, stating: “The Samarco Fundão dam failure in 2015 was a terrible tragedy. It should never have happened and must never be forgotten. Today’s agreement reflects our ongoing dedication to do right by the Brazilian people.”
The agreement resolves Brazilian claims, though some international lawsuits and individual cases are still pending.
