English High Court Finds BHP Mining Liable for Brazilian Dam Collapse

The English High Court has ruled that the Australian company BHP Mining is liable for the catastrophic collapse of the Fundão Dam in Brazil, which occurred in March 2015 and resulted in the country’s worst environmental disaster. The ruling, delivered by Justice Finola O’Farrell on Friday, determined that the dam’s failure, which claimed the lives of 19 individuals, was foreseeable and rejected claims from BHP that the incident was sudden and unexpected.

In her judgment, Justice O’Farrell highlighted evidence showing that the dam had exhibited warning signs over a year prior to its failure, including seepage and cracking. A thorough stability analysis at that time would have indicated a significantly elevated risk of collapse. This landmark ruling marks a significant application of Brazilian environmental law by an English court, underscoring the complexities of international legal jurisdiction.

Legal Precedence and Implications

BHP’s defense had previously contended that the legal proceedings in the UK constituted an “abuse of process” and duplicated ongoing cases in Brazil. However, the court dismissed this argument, allowing the case to proceed. Justice O’Farrell clarified that BHP fell under the definition of “polluter” as per Brazilian law, specifically Article 3, IV of the Brazilian Environmental Law, which imposes liability regardless of fault.

The court adopted a comprehensive, multifactorial test from Brazilian jurisprudence, which expands the definition of a polluter. This includes not only direct operators but also those who finance operations and benefit from them. This broad interpretation sets a significant precedent for holding multinational corporations accountable for environmental disasters that occur abroad.

BHP holds a 50% stake in Samarco, the Brazilian company responsible for operating the iron ore mine where the dam collapsed. The disaster led to a massive release of mine waste into the Doce River, an event large enough to fill approximately 13,000 Olympic-sized swimming pools.

Environmental and Societal Impact

The environmental consequences of the dam’s failure have been devastating. A report from the Wilson Center estimates that biodiversity in the Doce River suffered severely, with around 29,000 fish carcasses recovered from the waters. This disruption has had a cascading effect on the local food chain, leading to starvation among bird populations that depended on the fish as a primary food source.

Additionally, approximately 80% of the native vegetation in the area was destroyed, with Brazilian prosecutors estimating the socio-environmental damage to be between 37.6 billion and 60.6 billion reais. Prior to this ruling, various legal actions had taken place in Brazil, including homicide charges against top BHP executives linked to the deaths of 21 individuals; these charges were, however, later suspended.

This ruling by the English High Court not only holds BHP Mining accountable but also emphasizes the importance of corporate responsibility in environmental stewardship, setting a potential precedent for future cases involving multinational corporations and their operations in foreign jurisdictions.