BHP Dismisses UK Contempt Case Over Brazil Dam Collapse

• Claimants alleged BHP was in contempt for funding Brazilian mining lobby group Ibram's lawsuit to block municipalities from suing in London, but the Court of Appeal dismissed the case
• BHP is seeking permission to appeal a High Court ruling that found it liable for the 2015 dam collapse, with a second trial on damages scheduled for April 2027
• Brazil signed a 170 billion reais ($31.94 billion) compensation agreement with BHP, Vale, and Samarco during the trial's first week

BHP Wins Dismissal of UK Contempt Case Related to Brazil Dam Disaster

BHP successfully overturned a contempt of court case in Britain on Monday, March 16, related to litigation stemming from the 2015 Mariana dam collapse in southeastern Brazil. The Court of Appeal ruled in BHP's favor, ending proceedings that alleged the mining company interfered with justice administration.

Key Details:

The contempt case centered on allegations that BHP funded Brazilian litigation through mining lobby group Ibram to prevent municipalities from suing in London courts. Claimants—including hundreds of thousands of Brazilians, local governments, and businesses—argued this constituted contempt of court. BHP initially lost its bid to dismiss the case last year before the Court of Appeal reversed that decision.

Underlying Litigation:

The contempt case emerges from broader legal proceedings concerning the Mariana dam disaster, one of Brazil's worst environmental catastrophes. The dam was owned and operated by Samarco, a joint venture between BHP and Vale. BHP recently sought permission to appeal a High Court ruling finding it liable for the collapse, with the Court of Appeal expected to decide on this application in coming weeks.

A second trial to determine damages is scheduled for April 2027. During the first trial week, Brazil signed a 170 billion reais ($31.94 billion) compensation agreement with BHP, Vale, and Samarco.

Company Position:

BHP maintains the London litigation duplicates ongoing legal proceedings and reparation programs already underway in Brazil. The company welcomed Monday's ruling dismissing the contempt proceedings, while claimants' lawyers indicated their focus remains on the underlying liability case.

Market Implications:

The decision removes one legal complication for BHP, though significant liability exposure remains pending the appeals process and 2027 damages trial.