BHP Reaches Billion-Dollar Settlement in Brazil Dam Disaster Case

BHP Group has agreed on a final settlement of R$170 billion with Brazilian authorities for the Samarco dam failure in 2015. The dam collapse resulted in a deadly mudslide in Mariana, killing 19 people and severely impacting the Rio Doce river. A federal judge had previously ordered BHP, Vale, and Samarco to pay substantial damages, a decision that can still be contested.

Mineral giant BHP Group announced on Friday it had reached a monumental R$170 billion ($29.93 billion) settlement with Brazilian public authorities to compensate for the catastrophic Samarco dam failure.

The disaster, occurring in 2015, unleashed a massive mudslide in the southeastern city of Mariana, tragically taking 19 lives and seriously polluting the Rio Doce river, which runs to the Atlantic Ocean. A Brazilian federal judge had stipulated earlier this year that BHP, along with partner Vale and their joint venture Samarco, should pay up to 47.6 billion reais for the damages, though the ruling is open to appeal.

BHP Brasil noted that the expected financial outflows conform with their current FY2024 Samarco dam failure provision of US$6.5 billion. The company clarified in its statement that no adjustments to this provision are necessary at this time. ($1 = 5.6793 reais)

(With inputs from agencies.)