BHP Agrees to $73M Settlement in Australian Shareholder Suit Over Brazil Dam Failure

BHP Group has agreed to settle an Australian shareholder class action related to a 2015 dam failure in Brazil for $73 million. The settlement, inclusive of interest and costs, will be subject to approval by the Federal Court of Australia. BHP expects to recover the majority of the sum from its insurers. The dam failure killed 19 people and polluted over 400 miles of waterways.

Global mining giant BHP Group has agreed to settle an Australian shareholder class action related to the 2015 Fundao tailings dam collapse in Brazil for A$110 million ($72.52 million). The settlement, which includes interest and costs, is subject to approval by the Federal Court of Australia. BHP expects to recover the majority of the sum from its insurers [1].

The class action was filed in 2018 on behalf of shareholders who had acquired BHP shares before the Fundao Dam failure. The dam collapse at an iron ore mine owned by Samarco near the city of Mariana in southeastern Brazil resulted in the deaths of 19 people, left hundreds homeless, and polluted over 400 miles of waterways. Samarco is a joint venture between BHP's Brazilian unit and miner Vale [1].

In 2024, a Brazilian federal court ruled that Vale, BHP, and Samarco were not criminally liable for the dam collapse. Despite the legal ruling, BHP has taken a proactive approach to address the financial implications of the disaster. The settlement underscores BHP's commitment to resolving shareholder concerns and managing its legal liabilities [1].

BHP Group, the world's largest listed miner, continues to focus on its strategic capital allocation and growth initiatives. Recently, the company raised €1.4 billion via a dual-tranche bond offering to fund copper expansion, strategic acquisitions, and decarbonization projects. This move reflects BHP's strategic pivot toward copper, which is increasingly critical for the green economy [2].

The settlement highlights the importance of effective risk management and compliance in the mining industry. As BHP navigates the transition from fossil fuels to metals like copper, the company's financial discipline and strategic capital allocation will be crucial for long-term value creation.

References:
[1] Reuters. (2025). BHP Group to Pay $72.52 Million to Settle Australian Samarco Class Action. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3UV1HO:0-bhp-to-pay-72-5-million-to-settle-samarco-class-action-over-2015-dam-collapse/
[2] Marketscreener. (2025). Mining Giant BHP Settles Australian Samarco Class Action for $72.52 Million. Retrieved from https://www.marketscreener.com/news/mining-giant-bhp-settles-australian-samarco-class-action-for-72-5-million-ce7d59dfd889f226