Mining giants told to pay $9.7bn over Brazil dam disaster

World 14:30 26.01.2024

A federal judge in Brazil has ordered mining giants BHP, Vale and their Samarco iron ore joint venture to pay 47.6bn reais ($9.67bn) in damages over a deadly dam burst in 2015. Ednews informs, referring to the BBC.


The collapse of the Fundão dam in the south-east of the country caused a giant mudslide that killed 19 people. It also severely polluted the Rio Doce river, compromising the waterway to its outlet in the Atlantic Ocean. It was not immediately clear how much each company is required to pay.
 
Judge Vinicius Cobucci said the companies were liable for "moral damages", or non-material harm, such as emotional distress suffered by those affected by the incident. He added that the money, which will be adjusted for inflation since 2015, will be put into a state fund and used for projects and initiatives in the area impacted by the dam collapse.

The ruling came in response to a civil action brought by state and federal public prosecutors. BHP and Vale also face a class action lawsuit in the UK with more than 700,000 claimants.

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