KEY POINTS
- Vale and BHP agree to a $29.85 billion compensation deal.
- The agreement could resolve over 100 lawsuits in Brazil.
- Legal challenges continue in London and the Netherlands.
A contract for the payment of 170 billion reais ($29.85 billion) in compensation for the 2015 Mariana dam tragedy in Brazil is almost finalized by Vale, BHP, and their joint venture Samarco.
The agreement, which is anticipated to be completed shortly, intends to settle over a hundred claims against the businesses. The Doce River was devastated, hundreds were homeless, and 19 individuals lost their lives as a result of the dam collapse in Mariana, a city in the southeast.
Under the terms of the deal, the corporations will pay 100 billion reais over the course of the following 20 years to finance various recovery and compensation initiatives.
32 billion reais are also set aside for programs aimed at environmental restoration and individual compensation. The 38 billion reais that the mining corporations have already paid since the accident are also included in this settlement.
Legal implications in Brazil and abroad
While the deal is significant, it does not eliminate the possibility of new lawsuits if additional damages related to the dam rupture are discovered in the future.
However, the agreement is expected to resolve over a hundred public civil cases against the miners in Brazil. According to sources familiar with the discussions, individual claims related to the disaster are likely to be settled by 2025.
According to Mining.com, the settlement may also impact class action lawsuits filed in London and the Netherlands. The companies hope that the deal will weaken international legal actions by showing that Brazil is addressing the issue domestically.
One source stated that the main argument for the English case, alleging that Brazil lacked a resolution mechanism, would be undermined by this agreement.
Pressure and further legal challenges
International legal challenges persist in spite of the settlement. Currently, a significant case in London is being handled by the law firm Pogust Goodhead. Holding BHP responsible for its part in the dam collapse is the goal of the 12-week trial.
Pogust Goodhead’s attorney, Ana Carolina Salomao, pointed out that the Brazilian agreement does not nullify the trial because it intends to make large organizations accountable for their carelessness and goes beyond monetary compensation.
Samarco, BHP, and Vale have all pledged to completely restore the harm the tragedy has caused.
They contend that in order to guarantee complete restitution and accountability for the sad incident, the continuing legal proceedings, both in Brazil and overseas, should be concluded.
