BHP liable for 2015 Brazil dam collapse, UK court rules in mammoth lawsuit

LONDON (Reuters) -BHP can be held liable over the 2015 collapse of a dam in southeastern Brazil, London’s High Court ruled on Friday, in a lawsuit the claimants’ lawyers previously valued at up to 36 billion pounds ($48.32 billion).

Hundreds of thousands of Brazilians, dozens of local governments and around 2,000 businesses sued BHP over the collapse of the Fundao dam in Mariana, southeastern Brazil, which was owned and operated by BHP and Vale’s Samarco joint venture.

Brazil’s worst environmental disaster unleashed a wave of toxic sludge that killed 19 people, left thousands homeless, flooded forests and polluted the length of the Doce River.

Judge Finola O’Farrell said in her ruling that continuing to raise the height of the dam when it was not safe to do so was the "direct and immediate cause" of the dam’s collapse, meaning BHP was liable under Brazilian law.

BHP said it would appeal against the ruling and continue to fight the lawsuit.

BHP’s President Minerals Americas Brandon Craig said in a statement that 240,000 claimants in the London lawsuit "have already been paid compensation in Brazil".

"We believe this will significantly reduce the size and value of claims in the UK group action," he added.

($1 = 0.7451 pounds)

($1 = 5.4039 reais)