Vale, BHP ordered to pay $9.56b over Brazil dam collapse
Christian Fernsby ▼ | January 27, 2024
A Brazilian court has ordered Vale and BHP and their joint venture Samarco to pay $9.56 billion (RM45 billion) for damage caused by a 2015 tailings dam collapse.Article continues below
Thursday’s ruling orders the companies to pay 47.6 billion reais (about RM45 billion), according to the Belo Horizonte federal court document. It also says the figure should be adjusted for interest due to time elapsed since the disaster.
The tragedy in the southeastern town of Mariana unleashed a torrent of nearly 40 million cubic meters of highly toxic mine sludge, killing 19 people, flooding 39 towns and leaving more than 600 homeless.
The tailings dam was owned by Samarco, a joint venture between Brazil’s Vale and the Anglo-Australian miner BHP.
“The companies BHP, Vale and Samarco were ordered to pay compensation for collective moral damages, due to the violation of the human rights of the affected communities,” judge Vinicius Cobucci wrote in his ruling.
The sum is to be paid into a federally administered fund for use in rehabilitating the affected areas, according to the ruling.
As a result of the accident, “communities have suffered repercussions to their housing, work and personal relationships,” Cobucci wrote, adding that “people have died” and “there has been environmental degradation.”
The towns of Bento Rodrigues and Paracatu de Baixo were wiped off the map when the iron ore waste roared down the mountainside in the 2015 disaster. The affected areas remain ghost towns, with thousands of people awaiting some kind of compensation. ■ What to read next
Modified arctic air combined with a moisture-laden area of low pressure along the Gulf Coast will continue to allow for a broad area of winter weather impacts from the Lower Mississippi Valley to the Southeast today into early Saturday morning.
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