On November 14, 2025, the UK High Court ruled that BHP Group is liable for the 2015 collapse of the Fundão dam in southeastern Brazil, a decision that could expose the company to damages valued at up to £36 billion ($48 billion). The ruling follows the court’s finding that BHP, through its 50 % ownership of the Samarco joint venture that operated the dam, exercised control over risk assessment and dam management, and therefore breached Brazilian environmental law and civil code provisions that hold polluters accountable for foreseeable harm.
The Fundão dam failed on November 5, 2015, killing 19 people and destroying downstream villages while releasing toxic tailings into the Doce River. The disaster released an estimated 60 million cubic metres of contaminated material, causing widespread ecological damage and long‑term health risks for local communities. The UK court’s decision confirms that BHP’s role in Samarco’s operations made it responsible for the foreseeable collapse, a finding that aligns with earlier Brazilian court rulings and the company’s own admission of liability in the 2024 settlement with Brazilian authorities.
BHP’s liability stems from its control over Samarco’s operations and its failure to implement adequate safety measures. The UK court held that BHP’s oversight of the dam’s design, construction, and maintenance constituted negligence under Brazilian law, and that the company’s assumption of risk management responsibilities made it a “polluter” under the Brazilian civil code. This legal reasoning underscores the company’s duty to prevent environmental harm when it has operational control, even if the incident occurred in a foreign jurisdiction.
Financially, the potential damages could dwarf BHP’s existing provisions. The company has already recognised a $5.5 billion provision for its obligations under the Brazilian settlement, which was revised from $5.8 billion at the end of June 2025. The UK claim, valued at up to £36 billion, could significantly strain BHP’s balance sheet and cash‑flow position, especially if the court awards damages close to the upper end of the valuation range. The exposure also raises questions about the adequacy of BHP’s risk‑management and ESG frameworks.
In October 2024, BHP and Vale reached a comprehensive settlement with Brazilian authorities for approximately $32 billion over 20 years to address claims related to the dam collapse. BHP argues that many of the 600,000 claimants in the UK group action have already received compensation under this settlement, which should reduce the size of the UK claim. However, the UK court’s ruling indicates that the settlement does not absolve BHP of liability for the specific damages sought in the UK litigation.
BHP has announced its intention to appeal the UK court’s decision. The appeal will focus on the legal basis for the liability ruling and the calculation of damages, with a potential hearing scheduled for late 2026. The company’s management has stated that a successful appeal could mitigate the financial impact, but the outcome remains uncertain and will be closely monitored by investors and regulators.
While the fact‑check report does not provide immediate market reaction data, the magnitude of the potential liability and the precedent it sets for mining operators worldwide are likely to influence investor sentiment and ESG ratings. Analysts are expected to scrutinise BHP’s risk‑management disclosures and the company’s ability to absorb a multi‑billion‑dollar payout.
The ruling also signals a shift in how environmental claims against mining companies are evaluated, potentially encouraging more litigation in other jurisdictions and prompting stricter safety standards across the industry. BHP’s reputation as a responsible resource producer may suffer, and the company will need to demonstrate robust governance and environmental stewardship to regain stakeholder confidence.
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