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