BHP Agrees to Settle Australian Shareholder Class Action Over 2015 Brazil Dam Collapse

BHP Group has agreed to pay A$110 million (approximately US$73 million) to settle an Australian shareholder class action stemming from the 2015 Fundão Dam collapse in Brazil, which killed 19 people and caused extensive environmental damage. The settlement, which is subject to Federal Court of Australia approval, covers shareholders who acquired BHP shares between August 2012 and November 2015, prior to the disaster. BHP has made no admission of liability and expects to recover the majority of the settlement costs from its insurers. The Fundão Dam was owned by Samarco, a joint venture equally held by BHP's Brazilian unit and Vale. In 2024, a Brazilian federal court ruled that BHP, Vale, and Samarco were not criminally liable for the collapse. The case highlights ongoing legal and financial repercussions for BHP related to the dam failure, which severely impacted local communities and ecosystems along the Doce River.