BHP loses appeal against $6B Brazil dam lawsuit; claim can proceed in U.K.

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BHP (NYSE:BHP) lost an appeal in a London court Friday seeking to block a 5B-plus ($6B-plus) group action claim in the U.K. over the 2015 Samarco dam failure that triggered Brazil's worst environmental disaster.

The judgment allows the group action to continue in the U.K., overturning a 2020 decision by the High Court.

BHP (BHP) said it is considering whether to seek permission to appeal the judgment to the U.K. Supreme Court.

The collapse of the Fundao dam, owned by the Samarco joint venture between BHP and Vale, sent 40M cm of mud and mining waste into Brazil's Doce river, obliterating villages in its path, before reaching the Atlantic Ocean more than 400 miles away.

BHP (BHP) shares recently traded at YTD lows as commodity prices plunge.

Comments

[jeffcthomson]

If this was anything other than a shakedown they'd be going after the 50% partner Vale as well.

[jeffcthomson]

I should’ve sold. Samarco is a jointly owned business, with Vale. The responsibility is not just BHP’s. British legal system still trying to show their relevance. ‘Brazil can’t do this on their own’. Not sure they’ll be a different outcome from Britain’s Supreme Court. Can they just be ignored? It’s not their jurisdiction.

[bobcowman]

Haven't they reserved this cost already?

[aabp]

."..Doce river, obliterating villages in its path, before reaching the Atlantic.."

nonsense...apart from a dozen houses in the immediate hamlet (19 deaths, tragic enough), no obliterated villages in its 400 mile path, etc

[Guraaf]

Oh no. I recently bought some and now not sure if I should hold or add more if it falls below $50.

[woodland]

Another gut punch.