Vale, one of the world’s leading mining companies, has failed in its attempt to block BHP Group’s bid to make it share potential liability in a £36 billion ($46 billion) lawsuit. The lawsuit stems from Brazil’s worst environmental disaster, the collapse of the Fundao Dam in 2015. BHP, the largest mining company by market value, and Vale jointly owned and operated the dam through their partnership, Samarco.
More than 720,000 Brazilians are suing BHP over the tragic incident. The dam’s collapse resulted in the release of over 40 million cubic meters of mud and toxic waste into the Doce river, causing widespread destruction and the loss of 19 lives. The mud and waste also traveled more than 650 kilometers (400 miles), reaching the Atlantic Ocean.
BHP, however, denies any liability and sought to bring Vale into the lawsuit by arguing that both companies should share the potential damages. BHP claimed that since Samarco was jointly owned by the two companies, Vale should also bear responsibility. In response, Vale challenged the jurisdiction of London’s High Court, maintaining that any dispute between the companies should be handled in Brazil.
On Monday, Judge Finola O’Farrell rejected Vale’s challenge in a written ruling. She stated that BHP’s claim against Vale closely resembled the claimants’ case against BHP, and therefore, it should be addressed within the existing lawsuit. The ruling has no immediate impact on the underlying case, according to a spokesperson for BHP.
The Renova Foundation, established in 2016 by Samarco and its shareholders, has implemented reparations and compensation programs for those affected by the disaster. These initiatives have provided over $6 billion in funding for rehousing, rehabilitation, and indemnification.
Vale and the lawyers representing the claimants did not immediately comment on the ruling. The case highlights the complex legal battles surrounding the catastrophic environmental events and the ongoing efforts to hold responsible parties accountable.
