**In a landmark deal, BHP and Vale pledge extensive compensation to those affected by the Mariana dam disaster as legal battles unfold domestically and internationally.**
### Major Settlement Reached Over Brazil Dam Disaster: Mining Giants Compensate Communities
### Major Settlement Reached Over Brazil Dam Disaster: Mining Giants Compensate Communities
**Historic $30bn agreement aims to remedy devastation caused by catastrophic dam collapse in 2015.**
The mining industry is witnessing significant accountability as BHP and Vale finalize a $30 billion settlement with the Brazilian government in response to the catastrophic dam collapse that occurred in Mariana in 2015. The disaster, considered the country’s worst environmental crisis, wreaked havoc on local communities by unleashing toxic waste and mud that obliterated villages, destroyed homes, and claimed the lives of 19 individuals.
The agreement was formalized on Friday, with Brazilian President Luis Inacio Lula da Silva present to underscore the importance of the settlement. President Lula expressed his hope that mining giants would take heed of the lessons learned from the calamity, suggesting that preventative measures would have been less expensive than the current reparations.
Ownership of the collapsed dam belonged to Samarco, a collaborative endeavor between Vale and BHP. In the aftermath, both companies established a foundation aimed at providing reparations, which has already dispersed billions towards repairs, including the construction of a new town to accommodate displaced residents. However, many locals continue to voice their dissatisfaction regarding inadequate compensation for rebuilding their lives nearly a decade post-disaster.
In parallel with the legal situation unfolding in Brazil, over 620,000 plaintiffs have taken legal action against BHP in the UK, leading to a trial that commenced this week. These claimants are seeking around $47 billion in damages, focusing on whether BHP, as the parent company, bears responsibility for the disaster. Additionally, around 70,000 individuals are pursuing legal recourse against Vale in The Netherlands, with both companies insisting that these international lawsuits are superfluous and merely replicate the legal processes currently underway in Brazil.
Frustrated with the sluggish pace of Brazil's justice system, various community members from Mariana have opted into the UK legal challenges, suspecting that the recent settlement would prompt more swift action due to growing international scrutiny. Back in 2016, BHP and Vale had initially consented to a $3.5 billion compensation plan, but negotiations were reignited in 2021 due to the extended delays.
The latest agreement outlines a commitment by the mining companies to address both past and future responsibilities concerning the welfare of people, communities, and ecosystems impacted by the catastrophe. Specifically, the deal will see a disbursement of 100 billion reais ($17.5 billion) to local authorities over the course of two decades, alongside an additional 32 billion reais directed toward compensating and resettling victims, as well as environmental restoration. The companies also maintain that they have already distributed 38 billion reais in compensation to affected parties thus far.
The agreement was formalized on Friday, with Brazilian President Luis Inacio Lula da Silva present to underscore the importance of the settlement. President Lula expressed his hope that mining giants would take heed of the lessons learned from the calamity, suggesting that preventative measures would have been less expensive than the current reparations.
Ownership of the collapsed dam belonged to Samarco, a collaborative endeavor between Vale and BHP. In the aftermath, both companies established a foundation aimed at providing reparations, which has already dispersed billions towards repairs, including the construction of a new town to accommodate displaced residents. However, many locals continue to voice their dissatisfaction regarding inadequate compensation for rebuilding their lives nearly a decade post-disaster.
In parallel with the legal situation unfolding in Brazil, over 620,000 plaintiffs have taken legal action against BHP in the UK, leading to a trial that commenced this week. These claimants are seeking around $47 billion in damages, focusing on whether BHP, as the parent company, bears responsibility for the disaster. Additionally, around 70,000 individuals are pursuing legal recourse against Vale in The Netherlands, with both companies insisting that these international lawsuits are superfluous and merely replicate the legal processes currently underway in Brazil.
Frustrated with the sluggish pace of Brazil's justice system, various community members from Mariana have opted into the UK legal challenges, suspecting that the recent settlement would prompt more swift action due to growing international scrutiny. Back in 2016, BHP and Vale had initially consented to a $3.5 billion compensation plan, but negotiations were reignited in 2021 due to the extended delays.
The latest agreement outlines a commitment by the mining companies to address both past and future responsibilities concerning the welfare of people, communities, and ecosystems impacted by the catastrophe. Specifically, the deal will see a disbursement of 100 billion reais ($17.5 billion) to local authorities over the course of two decades, alongside an additional 32 billion reais directed toward compensating and resettling victims, as well as environmental restoration. The companies also maintain that they have already distributed 38 billion reais in compensation to affected parties thus far.
