12th Jul 2024 12:57
(Alliance News) - BHP Group Ltd said on Friday it has agreed with its joint-venture partner Brazilian iron ore miner Vale SA to jointly cover any potential claims that arise from the UK lawsuit following the Fundao dam disaster in 2015.
The tailings dam was operated by Samarco Mineracao SA, a 50-50 joint venture of BHP and Vale.
BHP said on Friday the two companies have agreed to each pay 50% of any claim from the ongoing legal actions in the UK, Netherlands and Brazil.
The Melbourne-based miner said this agreement comes without any admission of liability for these lawsuits, and it reinforces an undertaking in 2016 that the two miners will each contribute 50% for the Fundao dam failure.
BHP said it is a defendant to a group action claim in the English High Court, brought by over 600,000 claimants seeking damages linked to the Fundao dam failure. It maintained that it does not consider that it is liable to the claimants in the English proceedings and will continue to defend itself.
"BHP believes the English proceedings are unnecessary because they duplicate matters already covered by the existing and ongoing work of the Renova Foundation and legal proceedings in Brazil," it said.
In March 2024, a new claim was filed against Vale and the Dutch subsidiary of Samarco in the Netherlands on behalf of about 78,000 Brazilian claimants for compensation for the dam disaster.
BHP said it is not a defendant in the Netherlands proceedings.
Late in April 2024, BHP and Vale made an "indicative" USD25 billion offer to settle claims arising from the Fundao dam incident.
Shares in BHP rose 1.4% to 2,283.00 pence each in London on Friday afternoon. In Johannesburg, they rose 1.8% to ZAR532.39 each.
By Artwell Dlamini, Alliance News reporter
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