The Brazilian federal government announced on Friday that it has successfully negotiated a multibillion-dollar settlement with the mining firms involved in the catastrophic dam failure that occurred in 2015, which has been labeled as the worst environmental disaster in the nation’s history.
The agreement stipulates that Samarco, a collaboration between the Brazilian mining corporation Vale and the Anglo-Australian company BHP, will disburse 132 billion reais (approximately $23 billion) over a period of 20 years. These funds are intended to address the extensive human, environmental, and infrastructure damages caused by the release of a large volume of toxic mining waste into a significant river in the southeastern state of Minas Gerais. This disaster claimed the lives of 19 individuals and devastated numerous communities.
In a speech delivered at the presidential palace, President Luiz Inácio Lula da Silva expressed regret over the preventable nature of the disaster, addressing state governors, members of his administration, media representatives, and victims of the tragedy. He criticized the mining companies for prioritizing profits over safety, garnering applause from attendees.
The toxic waste, which could fill about 13,000 Olympic-sized swimming pools, traveled down the Doce River for 420 miles before reaching the Atlantic Ocean, polluting waterways and coastal regions in adjacent states. During discussions with the federal government, the mining companies stated that they had already compensated victims with payments totaling 38 billion reais (roughly $6.7 billion).
The settlement addresses the needs of more than 300,000 victims, although this number does not encompass all affected individuals. A class action suit was recently filed in a UK court, asking for reparations from BHP for around 620,000 people. The lawsuit, which seeks about 36 billion pounds ($47 billion) in damages, was initiated in London because one of BHP’s primary legal subsidiaries was located there at the time of the disaster.
This situation prompted the Chief Justice of the Brazilian Supreme Court, Luís Roberto Barroso, to reach out to President Lula, urging him to ensure a domestic resolution to the matter. Barroso remarked, “I spoke with Lula and warned him of the potential damage to Brazilian courts if this issue ran its course abroad.”
Under the terms of the recent agreement, victims will each receive 35,000 reais ($6,150), while those engaged in fishing and farming will get a total of 95,000 reais ($17,000) through monthly payments distributed over four years.
Cristiano Sales, a 42-year-old resident of Bento Rodrigues, one of the areas severely affected, returned to the site of his former home three months post-disaster. The only item he recovered was a jersey bearing the colors of his favorite soccer team, Cruzeiro. Sales now lives in a new house designated by the mining companies as part of the reparations to his family. After pursuing legal action, he received 100,000 reais ($18,000) and continues to seek further compensation through the ongoing London lawsuit.
“While money can’t replace what we have lost, we accept it because it is owed to us. No sum, whether 100,000 or even 300,000, can restore our former lives,” Sales stated.
BHP, headquartered in Melbourne, Australia, released a statement asserting that the UK lawsuit is redundant as it concerns issues already being addressed through reparative initiatives and legal matters in Brazil, yet they remain prepared to defend their position.
The law firm Pogust Goodhead, representing the plaintiffs in the UK case, clarified that the settlement achieved in Brazil should not influence the ongoing litigation in London and assured that no victims would receive double compensation. They emphasized that their clients were not included in the negotiations and remain committed to securing full reparations for the outstanding damages.
The firm stated, “The agreement signed in Brazil signifies a response from the mining companies after nine years of negligence following immense public pressure and the initiation of the trial in England. However, the settlements still fall short of compensating the severe losses experienced by the victims, who continue to advocate for justice and comprehensive reparations.”