BHP, Vale to Pay $30B for 2015 Brazil Dam Collapse
On Friday, the Brazilian government signed a 170B reais ($29.85B) compensation deal with mining giants BHP, Vale, and Samarco to cover damages from the 2015 Mariana dam disaster....
Facts
- On Friday, the Brazilian government signed a 170B reais ($29.85B) compensation deal with mining giants BHP, Vale, and Samarco to cover damages from the 2015 Mariana dam disaster.[1]
- 38B reais have already been paid, with 5B reais due to be paid within 30 days. The rest of the funds must be paid through varying installments by 2043.[2]
- The incident in the state of Minas Gerais occurred when the BHP- and Vale-owned dam collapsed, releasing over 40M cubic meters of toxic waste that killed 19 people.[3][4]
- Brazil's worst environmental disaster caused extensive environmental damage, destroyed homes, and polluted the Doce River in southeastern Brazil.[5][4]
- This comes as a civil trial held in London began on Monday, with more than 620K victims, including 2K businesses, 46 municipalities, and 65 faith-based organizations, seeking an estimated $47B in damages.[6][7]
- The UK trial saw Anglo-Australian BHP, which, alongside Vale, owns Samarco, the Brazilian company operating the iron mine, accused of trying to avoid responsibility and placing obstacles in the claimants' way.[5][8]
Sources: [1]Al Jazeera, [2]Abc, [3]Au, [4]Reuters (a), [5]Guardian, [6]Ft, [7]Reuters (b) and [8]BBC News.
Narratives
- Narrative A, as provided by Yahoo and MINING.COM. Even though neither company was liable for the damage, they have been working to address the disaster's consequences, providing compensation and mitigating environmental impacts. The UK lawsuit is unnecessary and duplicates ongoing reparation work and legal proceedings in Brazil. The defendants have done right by the Brazilian people, organizations, and the environment.
- Narrative B, as provided by Malay Mail. The mining companies knew about the risks associated with increased production at the dam but didn't act. Moreover, they failed to take proper responsibility for the disaster in its aftermath. While this compensation is a step in the right direction, it falls short of truly holding the powerful mining giants to account, sidelines the victims' concerns, and offers an absurdly lenient payment plan — which is exactly why the UK suit is needed.
