15th Jul 2020 05:50
(Alliance News) - BHP Group PLC "deliberately ignored expert warnings" over its Mariana Dam in Brazil, a law firm said on Wednesday ahead of the start of group litigation proceedings next week.
The court hearing - which kicks off on July 22 - is the "largest group litigation in the history of UK courts", London-based PGMBM said. BHP is being sued for roughly GBP5 billion in damages by over 200,000 people, 25 local Brazilian governments and 530 businesses.
The trial is in relation to a disaster at the Mariana Dam in Mias Gerais, Brazil which occurred in 2015. It claimed the lives pf about 20 people.
"The dam was used to store iron ore tailings, a toxic waste product of the mining operations of Samarco Mineracao SA – a firm co-owned by BHP through a Brazilian subsidiary, alongside Brazilian mining firm Vale SA. The claim contends that BHP are ultimately responsible for the collapse. It is contended that, via Samarco, they repeatedly ramped up iron ore production and storage of the toxic tailings despite strong warnings that this would compromise its safety," PGMBM explained.
"The collapse caused around 50 million cubic meters of iron filings to spill into the Rio Doce. The resultant toxic mudflow destroyed the nearby villages of Bento Rodrigues and Paracatu de Baixo, and swept along nearly 700 kilometres of waterways to the Atlantic Ocean, causing environmental havoc and contaminating the water in its path."
Criminal and civil proceedings had been previously pursued against Samarco directors in Brazil, but PGMBM noted that victims of the disaster "have no prospect of receiving proper compensation through the Brazilian courts".
They added: "In the action before the court in Manchester, the judge will hear that the capacity of the dam was repeatedly increased by raising its height. PGMBM, on behalf of the claimants, will argue that warnings to BHP that this posed risks to safety, including warnings from the engineer responsible for the design of the dam, and that cracks which appeared in the dam were early signs of liquefaction and rupture, were disregarded before the eventual disaster."
BHP shares were 2.2% higher at AUD37.89, or USD26.50, each in Sydney on Wednesday afternoon.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
BHP Group