Vale reaches settlement and leaves proceedings in Samarco case in United Kingdom

Samarco’s partners, mining companies Vale and BHP Billiton, reached an agreement in November 2015 affecting the progress of the process being processed in the United Kingdom over liability for the tragedy. The full terms are confidential, but some details have been released. In a statement issued by Vale to the market this Friday (12).

The key development is that Vale will no longer answer to a foreign court, with BHP Billiton solely responsible for carrying out the defence. The two mining companies agreed to each pay 50% of fixed damages if found guilty.

Tragically, the collapse of the Samargo Dam located in Mariana (MG) released an avalanche of waste, causing the death of 19 people and creating impacts on the population of dozens of towns in the Dos River Basin. In 2018, victims filed a lawsuit in British courts seeking compensation and liability from London-based BHP Billiton.

The mining company initially claimed it had duplicate tests and argued that compensation for damages should only happen under the supervision of Brazilian courts. The process was shelved at an early stage, but the victims managed to reopen it by appealing to higher courts.

As the process progressed, BHP Billiton decided to file a new lawsuit to include the job. His request was accepted last year. However, with an agreement between the two mining companies, Vale’s request for inclusion will be withdrawn by BHP Billiton.

In the process being processed in the United Kingdom, around 700,000 victims were represented by the firm Bocast Goodhead and are seeking compensation for moral and material damages. Losses of property and income, increased expenses, psychological damage, damage caused by displacement and damage caused by lack of access to water and electricity, among other losses are listed.

In the case of indigenous peoples and quilombolas, effects on cultural practices and impacts resulting from relationships with the environment are addressed. There are also requests from 46 municipalities, companies and religious institutions. Inquests to assess responsibility for the tragedy are scheduled for October this year.

In March this year, victims added an email to the process, which BHP Billiton had assessed the risks of the dam before the tragedy. Boguest Goodhead’s office considers that its content proves that the mining company was aware of the conditions of the structure.

According to a market report published by Vale, the agreement signed with BHP Billiton does not admit of any liability. The mining company also said it was committed to measures to repair the current damage in Brazil.

The deal between BHP Billiton and Vale also affects a lawsuit filed by 78,000 victims in the Netherlands, and represented by Pogust Goodhead. In this case, the target was Dutch subsidiaries Vale and Samarco. The measure was adopted by the country’s judiciary in March this year. In this case, the contract stipulates that Vale and BHP Billiton will agree to equal damages, which will be fixed at any potential penalty.

Pogust Goodhead’s office released a statement saying nothing will change for victims who are part of the process. “In practice, the deal spares Labor the stress of having its directors questioned and its processes scrutinized at length in an English court – an exposure that would cause huge reputational damage to the company. However, nothing stops. BHP’s directors go through the questions”, the text records.

Repair in Brazil

In Brazil, the process of offsetting the Treaty of Transactions and Conduct Adjustment (TTAC) signed between the three mining companies Union and the governments of Minas Gerais and Espirito Santo is revolving. Renova Foundation was formed based on it. It took over the management of more than 40 projects, with mining companies responsible for paying for all operations.

However, for more than eight years, the company’s activities have been the target of several legal challenges from victims, Minas Gerais (MPMG) and the Federal Public Ministry (MPF). Debates range from delays in completing reconstruction work to compensation in the tragedy-hit districts. An effort to overhaul the compensation process, capable of handling more than 85,000 cases related to the tragedy, has been underway since 2022. No success yet.

In this situation, in January this year, the Federal Court ordered Samarco, Vale and BHP to pay R$47.6 billion to repair the collective moral damages caused by the dam collapse. The mining companies are appealing the decision. They filed a case in the Federal Supreme Court (STF). The argument is that since they are federal bodies, this would be unconstitutional. If this position is accepted, municipalities will opt out of the process implemented in the UK.