Brazil court drops criminal charges against BHP over dam disaster that left 19 people dead

BHP executives are off the hook for criminal charges in Brazil over the Samaraco dam collapse in 2015 that killed 19 people and caused tens of billions of dollars worth of destruction.

A Brazilian court acquitted directors and other employees from BHP and Vale, which created iron ore joint venture Samarco, of criminal wrongdoing.

The regional court concluded there was no evidence to prove specific individual actions caused the failure of the Fundao tailings dam.

BHP and the Brazilian government last month settled on a $US31.7 billon ($45b) compensation scheme for victims of the 2015 dam collapse.

The settlement came just a week after a $70b class action also related to the Samaraco dam disaster, involving 600,000 claimants against BHP, formally kicked-off in the UK High Court.

The Brazil settlement is set to weaken aspects of the UK class action, given many of the claimants are now in line to receive compensation from the Brazil settlement.

Pogust Goodhead — the law firm spearheading the class action in the UK — has urged claimants not to sign up to the compensation scheme set up by BHP and Brazil’s government.

BHP said it was still considering the broader impacts of the Brazilian court ruling.

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

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