BHP (ASX, LON: BHP) has won a UK Court of Appeal ruling that ends contempt of court proceedings tied to claims it funded litigation aimed at preventing Brazilian municipalities from suing the miner in London over the 2015 Mariana dam disaster.
The case centred on allegations by lawyers for hundreds of thousands of Brazilian claimants, including local governments and businesses. They said BHP backed legal action in Brazil through mining lobby group Ibram to block municipalities from joining lawsuits in the UK. The claimants argued the move interfered with the administration of justice and amounted to contempt of court.
BHP had previously failed to have the case dismissed, but the Court of Appeal overturned that earlier decision on Monday, bringing the contempt proceedings to an end. The world’s largest miner welcomed the ruling, while lawyers for the claimants said their focus remains on the broader litigation over the dam collapse.
The judgment comes as BHP awaits another key decision in the sprawling case over the Samarco dam failure, one of Brazil’s worst environmental disasters. The structure, owned and operated by the Samarco joint venture between BHP and Vale (NYSE: VALE), collapsed in southeastern Brazil in 2015.
Last week, BHP sought permission to appeal a High Court ruling that found it liable for the disaster following a trial that began in October and concluded in March. The Court of Appeal is expected to decide in the coming weeks whether the miner can challenge that liability finding.
A second trial to determine damages is scheduled to begin in October, with another phase expected in April 2027 to assess compensation owed to claimants.
BHP has consistently denied liability, arguing the London case duplicates legal proceedings and compensation programs already underway in Brazil.
During the first week of the trial, Brazil reached a 170 billion reais (about $32 billion) compensation agreement with BHP, Vale and Samarco tied to the disaster.
(With files from Reuters)
