BHP and Vale square off in London court

The case, brought to trial by around 720,000 Brazilians, centres on who should accept legal and financial responsibility over the deadly 2015 collapse of a dam. The incident at the iron ore mine, owned by BHP and Vale’s joint venture Samarco,  became the country’s worst ever environmental disaster.

Brazilian federal prosecutors had claimed both miners failed to take actions that could have prevented the disaster. But the companies have repeatedly said they were not responsible for the dam’s collapse, that they complied with Brazilian law and that safety was always a key concern.

The lawsuit, one of the largest in English legal history, began in 2018, but was thrown out of court two years later. A Court of Appeal ruled in July 2022 that it could proceed.

BHP applied in December to have Vale join the case and contribute to damages if they lose, but the Brazilian miner challenged the London High Court’s jurisdiction to determine the claim.

The world’s largest miner also attempted to delay the court hearing until mid-2025, but a London court granted it in March just a five-month deferral.

“BHP currently has no right to a ‘contribution’ from Vale under Brazilian law,” said court filings submitted by Vale’s lawyers, Reuters reported.

“BHP can have no such right unless and until… it is found liable to the claimants and makes a payment to them,” the documents read.

Vale also said that as it has no direct operations in Britain, London is not the appropriate location for the case.

BHP’s lawyers said that if it is found liable, Vale should assume its responsibility too, as both companies owned and controlled Samarco equally.

The company has repeatedly said it believes the proceedings are unnecessary because “they duplicate matters already covered by the existing and ongoing work of the Renova Foundation” as well as legal proceedings in Brazil.

“BHP therefore seek to have Vale share the burden of any such liability, and contribute (50% or more) to any payments made,” BHP’s lawyers said in a filing.

The trial, which starts on October 7, 2024, is the latest in a series of lawsuits filed in Brazil, Australia and the UK resulting from the dam collapse.