Rotten Company

BHP Group

Approved Evidence

Added to Rotten Company: 8/20/2026
Conduct/Event period: 2005–2019
Ongoing: No
Resolution status: Resolved
Resolution date: October 2024
misconduct

BHP’s Escondida Mine Fined Over Groundwater Extraction That Caused Environmental Damage

Summary

n March 2022, Chile's environmental regulator, the Superintendencia del Medio Ambiente (SMA), sanctioned Minera Escondida, operated by BHP, over groundwater extraction from the Monturaqui aquifer near the Salar de Atacama. The regulator concluded that Escondida had breached the conditions of its environmental permit and classified the violation as “very serious.” It imposed a fine equivalent to approximately US$8 million. According to the SMA, Escondida failed to reduce its groundwater extraction as required, affecting groundwater that supports the Vegas de Tilopozo ecosystem. When Escondida challenged the sanction, Chile's First Environmental Court rejected the appeal in 2024 and upheld the regulator's decision. The SMA said the environmental effects were significant and that recovery was projected to take several centuries. Separate environmental-damage proceedings were brought by Chile's State Defense Council and the Peine Indigenous Community against Escondida and other companies that had extracted water from the aquifer. In October 2024, the parties reached a US$98 million settlement, subsequently approved by the First Environmental Court. BHP reports that Escondida's share is US$76 million. Escondida also paid the approximately US$8 million regulatory fine and did not appeal that decision further. BHP states that this concluded the environmental-damage claim. BHP had already ceased extracting groundwater from high-Andean aquifers for Escondida's operational water supply in 2020, replacing it primarily with desalinated seawater. Sources: Chilean Environmental Regulator (SMA) — Court upholds sanction https://portal.sma.gob.cl/index.php/primer-tribunal-ambiental-rechaza-reclamacion-y-confirma-sancion-de-la-sma-contra-minera-escondida/ Chilean Environmental Regulator — original sanction https://portal.sma.gob.cl/index.php/sma-sanciono-a-minera-escondida-por-6-600-millones-tras-dano-ambiental/ BHP 2025 reporting https://www.bhp.com/sustainability/environment/water BHP — cessation of high-Andean groundwater extraction https://www.bhp.com/news/case-studies/2020/09/breaking-the-water-energy-nexus

Evidence Weight
100.00
Severity: high
Recency Weight: 99.99933078966578
File Weight: 1
Added to Rotten Company: 8/20/2026
Conduct/Event period: November 5, 2015–November 5, 2015
Ongoing: No
Resolution status: Unresolved
misconduct

BHP Joint Venture’s Fundão Dam Collapse Killed 19 and Led to R$170 Billion Reparation Agreement

Summary

On 5 November 2015, the Fundão tailings dam at the Samarco iron-ore operation in Mariana, Minas Gerais, Brazil, collapsed. Samarco was a 50/50 joint venture between BHP Billiton Brasil, a BHP subsidiary, and Vale. The disaster killed 19 people and released mining tailings through communities and along the Doce River system, causing extensive environmental and socioeconomic damage. BHP, Vale and Samarco subsequently became responsible for extensive remediation and compensation programmes. In October 2024, Samarco, BHP Brasil and Vale entered into a comprehensive agreement with Brazil's federal government, the states of Minas Gerais and Espírito Santo, prosecutors and public defenders to resolve major public-authority claims arising from the disaster. Brazil's Supreme Court ratified the agreement on 6 November 2024. The agreement has a total financial value of R$170 billion, approximately US$31.7 billion, including amounts already spent and future payments and obligations. Under the agreement, Samarco is the primary obligor, while BHP Brasil and Vale are secondary obligors for obligations Samarco cannot fund or perform, proportional to their respective 50% ownership at the time of the disaster. The legal consequences have continued internationally. In November 2025, the English High Court found BHP liable under Brazilian law for the Fundão dam failure in litigation involving hundreds of thousands of claimants. BHP said it would appeal, and damages remain subject to later proceedings. BHP has also emphasized the extensive compensation and remediation already undertaken in Brazil. Sources: BHP — 2024 agreement and Brazilian Supreme Court ratification https://www.bhp.com/news/media-centre/releases/2024/11/samarco-update-ratification-of-agreement-with-brazilian-public-authorities Government of Minas Gerais — R$170 billion reparation agreement https://www.governo.mg.gov.br/Noticias/Detalhe/5509 BHP — Samarco reparations https://www.bhp.com/what-we-do/global-locations/brazil/samarco-reparations BHP — UK High Court liability decision https://www.bhp.com/news/media-centre/releases/2025/11/update-united-kingdom-group-action

Evidence Weight
100.00
Severity: high
Recency Weight: 99.99900827812658
File Weight: 1
Added to Rotten Company: 8/20/2026
Conduct/Event period: 2008–2008
Ongoing: No
Resolution status: Resolved
Resolution date: May 2015
misconduct

BHP Paid $25 Million to Settle SEC Charges Over Olympic Hospitality for Government Officials

Summary

In May 2015, the U.S. Securities and Exchange Commission charged BHP Billiton, now BHP Group, with violations of the Foreign Corrupt Practices Act's books-and-records and internal-controls provisions arising from its hospitality programme for the 2008 Beijing Olympic Games. BHP agreed to pay a $25 million civil penalty to settle the SEC proceeding. The SEC found that BHP invited approximately 176 government officials and employees of state-owned enterprises to attend the Olympics at company expense. Ultimately, BHP paid for 60 of those guests, as well as some spouses and other accompanying guests. Hospitality packages included Olympic tickets, luxury hotel accommodation and sightseeing, and were valued at approximately $12,000–$16,000 per package. According to the SEC, some invited officials were directly involved in, or able to influence, pending contract negotiations, regulatory matters, access rights or other business dealings affecting BHP. The SEC concluded that BHP's controls surrounding the hospitality programme were insufficient and that certain internal hospitality applications did not accurately reflect relevant pending negotiations or business relationships. Importantly, the SEC order did not find that BHP engaged in bribery or acted with corrupt intent. BHP settled without admitting or denying the SEC's findings. The U.S. Department of Justice separately completed its investigation without taking action. BHP also highlighted its cooperation and subsequent compliance improvements. Sources: SEC — Charges BHP Billiton With Violating FCPA at Olympic Games https://www.sec.gov/newsroom/press-releases/2015-93 SEC — Administrative Order https://www.sec.gov/files/litigation/admin/2015/34-74998.pdf BHP — End of U.S. Investigations https://www.bhp.com/news/media-centre/releases/2015/05/bhp-billiton-announces-end-of-us-investigations

Evidence Weight
100.00
Severity: high
Recency Weight: 99.99862864524353
File Weight: 1
Added to Rotten Company: 8/20/2026
Conduct/Event period: September 2017–September 2017
Ongoing: No
Resolution status: Resolved
Resolution date: April 1, 2025
misconduct

BHP Fined After Contractor Seriously Injured at Whaleback Iron Ore Mine

Summary

In April 2025, BHP Iron Ore Pty Ltd was fined A$125,000 in Western Australia's South Hedland Magistrates Court after pleading guilty to workplace-safety charges arising from a serious injury at BHP's Whaleback iron ore mine near Newman. The incident occurred in September 2017 while contractors were carrying out maintenance on an excavator. During work to realign the excavator's undercarriage and track, a worker used a sledgehammer to strike part of the equipment. A metal fragment was projected from the machinery and struck another contractor in the neck, causing a lacerated artery and serious injury. BHP pleaded guilty to charges concerning causing serious harm to an employee and failing to provide a workplace in which employees were not exposed to hazards. The Western Australian government said the prosecution highlighted the importance of appropriate risk assessment, procedures and controls when undertaking hazardous maintenance work. The case provides a documented example of a workplace-safety failure at a BHP-operated mining site, with the company accepting criminal responsibility through its guilty plea. Source: Government of Western Australia — BHP fined after worker seriously injured https://www.wa.gov.au/government/announcements/bhp-fined-after-worker-seriously-injured

Evidence Weight
100.00
Severity: high
Recency Weight: 99.99977100061834
File Weight: 1