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Brazilian court lets BHP off the hook for criminal charges over 2015 dam collapse

The federal court ruled that BHP is not liable for criminal offences relating to the 2015 Fundão dam failure

The debris of the municipal school of Bento Rodrigues district, which was covered with mud after the dam collapse in 2015. Picture: REUTERS/RICARDO MORAES
The debris of the municipal school of Bento Rodrigues district, which was covered with mud after the dam collapse in 2015. Picture: REUTERS/RICARDO MORAES

After reaching a $31.7bn settlement agreement with Brazilian authorities last month, BHP, Vale and their joint venture Samarco have now been acquitted from criminal charges related to the Fundão dam failure of 2015.

The charges were filed by a Brazilian federal prosecutor in 2016, one year after the collapse of Samarco’s tailings dam in the state of Minas Gerais.

According to a UN report, the incident resulted in about 60-million cubic metres of tailings being released into the surrounding environment — killing 19 people and severely contaminating the Rio Doce River, the region’s primary source of clean water.

On Friday, BHP addressed media commentary around the recent ruling by a Brazilian federal court, which determined that the group was not liable for criminal offences relating to the dam failure. The ruling also clears Samarco’s co-owner Vale, and VogBR, Samarco’s independent consultant, from being held liable.

“The media commentary reports that the federal court concluded that the evidence did not support any causal link between the companies (BHP, Vale and VogBR) and the failure of the Fundão dam, and also found that the individuals affiliated with Samarco, Vale and VogBR are not liable for criminal offences relating to the dam failure,” said BHP.

“As shareholders in Samarco, BHP Brazil and Vale have always been fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil,” said the company. 

“BHP Brazil will continue to focus on supporting the long-term recovery of the communities and environment affected by the dam failure.”

BHP said its Brazilian division would consider the federal court’s decision “once it has been served with the decision to assess implications and any next steps”.

The criminal proceedings are distinct from the civil claims against BHP, which saw the group announcing the settlement.

websterj@businesslive.co.za

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