Mining giants reach $30 billion deal for 2015 Brazil dam disaster
- In Reports
- 06:00 PM, Oct 26, 2024
- Myind Staff
Mining companies BHP and Vale have reached an agreement with the Brazilian government to pay around $30 billion (£23 billion) in compensation for the Mariana dam disaster that occurred in 2015, which was Brazil's worst environmental catastrophe.
The deal was signed on Friday, with Brazilian President Luis Inacio Lula da Silva present. When the dam collapsed, it released toxic waste and mud that flooded nearby towns, rivers, and forests. The disaster resulted in the deaths of 19 people, displaced hundreds more, and contaminated the river. President Lula said, "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 partnership between Vale and BHP. Since the disaster, the companies have established a foundation to provide compensation, which has already funded billions of dollars in repairs. This effort included constructing a new town to replace one that was destroyed. However, many community members still feel they haven't received adequate justice or enough support to rebuild their lives nearly nine years later.
In addition to the legal actions in Brazil, over 620,000 people have taken BHP to court in the UK, where BHP was based at the time, with the trial beginning earlier this week. In the civil trial, they are requesting damages of over $47 billion. Its initial phase will establish whether BHP, as a parent company, was culpable. In the Netherlands, Vale is also being sued by some 70,000 complainants. Both businesses contest responsibility and claim that this foreign lawsuit is "unnecessary" and redundant with Brazilian court processes.
Some community members in Mariana told the BBC they decided to join the legal action in the UK because they were frustrated with how slowly the Brazilian proceedings were moving. They suspected that the Brazilian settlement might be reached soon after the UK case began, thanks to increased international pressure. In 2016, both companies agreed to pay around $3.5 billion in today’s terms as compensation, but negotiations were reopened in 2021 because Brazil’s justice system was taking too long to resolve the issue.
Some community members in Mariana told the BBC they decided to join the legal action in the UK because they were frustrated with how slowly the Brazilian proceedings were moving. They suspected that the Brazilian settlement might be reached soon after the UK case began, thanks to increased international pressure. In 2016, both companies agreed to pay around $3.5 billion in today’s terms as compensation, but negotiations were reopened in 2021 because Brazil’s justice system was taking too long to resolve the issue.
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