Mining giants BHP and Vale have signed a historic deal with the Brazilian government to pay nearly $30 billion in compensation for the devastating Mariana dam collapse in 2015. The collapse, which caused Brazil’s worst environmental disaster, resulted in the release of toxic waste and mud that flooded nearby towns, rivers, and forests, killing 19 people and leaving hundreds homeless.
Brazilian President Luis Inacio Lula da Silva attended the signing of the deal, emphasizing the importance of holding mining companies accountable for their actions. President Lula stated, “I hope the mining companies have learned their lesson; it would have cost them less to prevent the disaster.”
The dam was owned by Samarco, a joint venture between Vale and BHP. Since the disaster, the companies have set up a foundation to compensate people and have already carried out billions of dollars’ worth of repairs, including building a new town to replace one of the destroyed towns.
However, many in the community still feel they have not received justice or enough support to rebuild their lives. In addition to the legal proceedings in Brazil, more than 620,000 people have taken BHP to court in the UK, seeking $47 billion in damages. The first stage of the trial will determine if BHP, as a parent company, is liable. Similarly, about 70,000 complainants are taking Vale to court in The Netherlands.
Both companies deny liability and argue that the overseas legal action is unnecessary and duplicates proceedings in Brazil. Despite the ongoing legal battles, Friday’s agreement covers past and future obligations to assist those affected by the disaster. The companies have agreed to pay 100 billion reais to local authorities over 20 years, 32 billion reais towards compensating and resettling victims, and repairing environmental damage, with an additional 38 billion reais already paid in compensation.
The community in Mariana has expressed frustration with the slow progress of the Brazilian justice system and hopes that the settlement reached in the UK case will expedite justice in Brazil. The agreement marks a significant step towards holding corporations accountable for their environmental impact and providing support to those affected by the tragic dam collapse.
