Mining companies BHP and Vale have signed an agreement with the Brazilian government to pay nearly $30 billion (£23 billion) in compensation for the Mariana dam collapse in 2015, which resulted in Brazil’s worst environmental disaster.
Brazilian President Luis Inacio Lula da Silva was present for the signing of the deal on Friday.
The dam collapse released toxic waste and mud, flooding nearby towns, rivers, and forests. Some community members in Mariana shared with the BBC their frustration over the slow progress of Brazilian legal proceedings, prompting them to join UK legal action. They suspected that an agreement in Brazil might be reached shortly after the UK case began due to increased international pressure.
In 2016, both companies had initially agreed to pay about $3.5 billion in today’s value in compensation, but negotiations were reopened in 2021 because of the sluggish pace of Brazil’s justice system in resolving the matter.
The agreement finalized on Friday addresses both past and future obligations to assist affected people, communities, and ecosystems.
The companies will pay 100 billion reais ($17.5 billion; £13.5 billion) to local authorities over the next 20 years and 32 billion reais for compensating and resettling victims while repairing environmental damage.
The remaining 38 billion reais represents the amount the companies claim to have already disbursed in compensation.
The disaster claimed the lives of 19 people, left hundreds homeless, and poisoned the local river.
President Lula remarked, “I hope the mining companies have learned their lesson; it would have cost them less to prevent the disaster.”
The dam was owned by Samarco, a joint venture of Vale and BHP.
Since the disaster, the companies have established a foundation to compensate victims, which has already financed billions in repairs, including building a new town to replace one of those destroyed.
Despite these efforts, many community members feel they have not received adequate justice or support to rebuild their lives nearly nine years later.
In addition to these legal proceedings in Brazil, over 620,000 individuals have taken BHP to court in the UK, where BHP was headquartered at the time. This trial commenced earlier this week.
Survivors of the dam collapse expressed their sentiment as the UK trial began, stating, “Nothing can bring a life back.” They are seeking approximately $47 billion in damages in this civil trial, with the first phase determining whether BHP, as the parent company, holds liability. Around 70,000 claimants are also pursuing legal action against Vale in The Netherlands.
Both companies deny liability, asserting that this overseas legal action is “unnecessary” and duplicates existing legal proceedings in Brazil.
