BHP faces class action over Samarco dam failure

BHP faces class action over Samarco dam failure

The miner also agreed to fund a total of US$211 million in financial support for the Renova Foundation, created to help victims of the Samarco dam disaster in Brazil.

A view of the Samarco mine, owned by Vale SA and BHP Billiton Ltd, in Mariana, Brazil, April 2016. (Reuters pic)
BENGALURU:
Global miner BHP said on Monday it has been served with a class action proceeding in the Federal Court of Australia regarding the 2015 Samarco dam failure in Brazil.

BHP said it would defend the claim lodged in Victoria state. It did not specify who had filed the class action, which relates to a 2015 dam burst that killed 19 people.

Samarco and its parent companies Vale SA and BHP signed a deal with Brazilian authorities in June to settle a US$5.30 billion (20 billion reals) lawsuit related to the failure.

The miner also agreed to fund a total of US$211 million in financial support for the Renova Foundation, created to help victims of the Samarco dam disaster in Brazil.

Last week, BHP said it expected to record a charge of US$650 million in its fiscal 2018 results on account of the failure. The charge was at the lower end of expectations according to analysts.

BHP shares fell 1% on Monday in a weaker overall market.

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