BHP awaits ruling after reports that unit cleared of criminal charges in 2015 dam disaster
Nov 15 (Reuters) - BHP Group BHP.AX said it was waiting to formally receive the court ruling on the 2015 Fundão tailings dam collapse in Brazil after media reports said a lower court has ruled that its unit and other firms are not criminally liable for the disaster.
The court found there was not enough evidence to establish a causal connection between the companies and the dam failure, the global mining giant said, citing media reports.
A dam collapse at an iron ore mine owned by Samarco, a joint venture between Vale SA VALE3.SA and BHP, near Mariana in southeastern Brazil, resulted in 19 deaths, left hundreds of people homeless, flooded forests and polluted the Doce River.
"BHP Brasil will consider the decision by the Federal Court once it has been served with the decision to assess implications and any next steps," it said in a statement dated Nov. 15.
Vale did not immediately respond to a Reuters request for comment.
The court's ruling on criminal charges, filed by Brazil's Federal Prosecutors in 2016, is distinct from the $31.7 billion civil settlement agreement disclosed on Oct. 25, which deals with framework obligations and other claims related to the dam failure.
Separately, BHP alsofaces a lawsuit in the UK for the Samarco dam disaster, potentially costing $47 billion in damages.
This lawsuit represents a massive group of plaintiffs, including Brazilian citizens, municipalities and businesses, with BHP and Vale agreeing to split any damages awarded.
"This decision does not affect the ongoing class action trial in the UK, which BHP continues to defend as it duplicates the efforts already ongoing in Brazil," BHP said.
BHP Brasil said it will focus on supporting the long-term recovery of communities and the environment affected by the dam failure.
Reporting by Roushni Nair in Bengaluru; Editing by Arun Koyyur
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
