By Brazil Stock Guide – BHP Group Ltd. (BHP:NYSE; BHP:B3) will pay $72.5 million (R$405 million) to settle a U.S. class-action lawsuit from investors over the 2015 Fundão dam collapse in Mariana, Brazil. The disaster, tied to the Samarco joint venture, killed 19 people and released millions of cubic meters of mining waste into the Doce River basin.
The settlement ends a case filed in the U.S. by shareholders who claimed financial losses after the collapse, says Reuters. The payout represents only a fraction of the more than R$155 billion ($28 billion) in compensation and reparations still under discussion in Brazil.
An investors’ lawyer said the agreement “provides some compensation to those who lost money after the stock plunged following the disaster.”
Pressure for broader reparations
The 2015 collapse became a symbol of large-scale mining risks in Brazil. BHP and Vale SA (VALE3:B3; VALE:NYSE), Samarco’s partner, still face lawsuits in Brazilian and UK courts. Environmental authorities warn that recovery of the Doce River basin may take decades.
Meanwhile, analysts say BHP is moving to mitigate legal risks abroad, but continues to face mounting pressure in Brazil. The deal underscores its strategy of reducing legal uncertainty, though the payout remains small compared with the massive social and environmental liabilities.
Investors, risks and the road ahead
Investors see the move as a way to clear part of the miner’s legal overhang, but note that the most significant cases remain in Brazil. The settlement could set a precedent for further out-of-court agreements abroad.