In a major legal defeat for the world’s largest mining company, London’s Court of Appeal has refused to let BHP challenge a landmark ruling holding it responsible for the 2015 Fundão dam collapse in Brazil. The decision cements a previous High Court finding that the mining giant is strictly liable under Brazilian law as a “polluter,” clearing the path for a damages trial that could cost the company billions of pounds.
The 2015 disaster—considered Brazil’s worst-ever environmental catastrophe—occurred when a tailings dam co-owned by BHP and Vale burst, releasing a massive wave of toxic sludge. The resulting flood killed 19 people, leveled entire villages, and contaminated hundreds of miles of the Doce River.
BHP had argued that the original judge failed to properly address its defense and that the UK lawsuit duplicated existing compensation efforts and legal proceedings in Brazil. However, the Court of Appeal dismissed these claims on Wednesday, stating there was “ample evidence” to support the High Court’s findings and that the company’s proposed grounds for appeal had “no real prospect of success.”
While BHP maintains that the $31.7 billion (170 billion reais) settlement signed with Brazilian authorities in 2024 is the most effective way to provide reparations, the UK court’s decision is a significant victory for the more than 600,000 claimants, including Indigenous communities and local municipalities.
The litigation now moves into its next phase. A second trial, scheduled to begin in April 2027, will focus on determining the specific losses and damages BHP must pay to the victims, a process expected to extend into 2028.