BHP to review court decision on $31.5bn Fundao dam claim
BHP Group said on Friday it would review a Brazilian Federal Court decision regarding a 155-billion reais ($31.53-billion) government claim over the 2015 collapse of Fundao dam owned by Samarco, its joint venture with Vale.
The company said its unit BHP Brasil had not received a decision from the court, adding that the group would review its implication, potential for an appeal and any potential impact on its provision related to the dam's collapse.
The court has issued an interlocutory decision ordering Vale, BHP and Samarco to pay 47.6-billion reais ($9.67-billion) in collective moral damages for the 2015 tailings dam burst that killed 19 people and led to severe pollution of the Rio Doce river.
This is one of the categories of damages sought in the $31.53-billion claim by the Federal Public Prosecution Office.
The parties have been in negotiations to seek a settlement of obligations under a framework agreement since 2021, and the talks are slated to resume in February this year.
BHP had set aside $3.7-billion in provision related to the Samarco dam failure, according to its 2023 annual report.
BHP said its unit is "fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil" through a not-for-profit foundation that was established following the dam failure.
"Although both companies' balance sheets should be able to handle these outflows, we think this could drive lower capital returns over time/push net debt in BHP's case through its $15-billion target ceiling," RBC analysts said in a note.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...
VISIT SHOWROOM
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
