Mining companies ordered to pay $9.7 billion in compensation for Brazil dam catastrophe

A federal judge in Brazil has ordered mining giants BHP, Vale, and their joint venture Samarco to pay $9.67 billion in damages for the deadly dam burst in 2015. The collapse of the Fundão dam caused a massive mudslide that killed 19 people and heavily polluted the Rio Doce River, which flows into the Atlantic Ocean. Each company's individual payment has not been specified. The ruling requires the money to be placed in a state fund and used for projects in the affected area. The decision was made in response to a civil action filed by state and federal prosecutors. Vale claimed it had not been informed about the ruling and mentioned that the Renova Foundation, which the companies have used for compensation payments, has already paid out $6.7 billion. BHP and Samarco have not commented on the ruling yet, and they have the option to appeal. Samarco is a joint venture between BHP and Vale, and the dam collapse is considered one of Brazil's worst environmental disasters. The incident displaced 700 people and wiped out the village of Bento Rodrigues. A 2016 report commissioned by BHP and Vale identified design flaws as the cause of the dam collapse, but did not assign blame. The report revealed that changes in the dam's design and inefficient water drainage ultimately led to its failure. The dam's walls became saturated, leading to a process known as "liquefaction." A small earthquake on the day of the incident may have accelerated the failure. This disaster prompted a closer examination of safety measures in the mining industry. BHP and Vale also face a class-action lawsuit in the UK with over 700,000 claimants. In January 2019, Vale experienced another tailings dam collapse in the same state, resulting in 270 deaths.