Exchange release
26 January 2024
Response to media commentary regarding Brazil Federal
Court decision
BHP notes the recent media commentary regarding
a decision by the Federal Court of Brazil in relation to the
BRL$155 billion (approximately US$32 billion) Federal Public
Prosecution Office claim.
As previously disclosed in BHP's 2023 Annual
Report, in May 2016, Brazil's Federal Public Prosecution Office
(and 18 other public entities) filed a public civil claim against
Samarco Mineração S.A. (Samarco), Vale S.A. (Vale) and Billiton Brasil Ltda
(BHP Brasil) seeking
BRL$155 billion (approximately US$43 billion at the time) for
reparation, compensation and collective moral damages in relation
to the failure of the Fundão tailings dam on 5 November
2015.
The Fundão tailings dam was operated by Samarco,
a non-operated joint venture owned by BHP Brasil (a subsidiary of
BHP Group Limited) and Vale. BHP Brasil and Vale each hold a 50 per
cent interest in Samarco.
On 16 October 2023, an interlocutory motion was
filed by the Brazilian Federal Prosecutors in the Federal
Prosecution Office claim seeking the early payment of collective
moral damages, which is one of the categories of damages sought in
the BRL$155 billion claim. The media commentary reports that the
Federal Court of Brazil issued an interlocutory decision
quantifying collective moral damages arising from the Fundão
tailings dam failure in the amount of BRL$47.6 billion (US$9.7
billion) (excluding interest and inflation from the date of the dam
failure) and ordering Samarco, Vale and BHP Brasil to pay these
damages, when any and all appeals are finally determined.
BHP Brasil has not been served with a decision
by the Court and will review the decision to assess its
implications, the potential for an appeal and any potential impact
to the Group's provision related to the Samarco dam failure. Since
early CY2021, the parties have been engaging in negotiations to
seek a settlement of obligations under the Framework Agreement and
BRL$155bn Federal Public Prosecution Office claim and the
negotiations are expected to resume in February 2024.
As disclosed in BHP's 2023 Annual Report, the
Group's provision related to the Samarco dam failure is US$3.7
billion as at 30 June 2023. Further details of the Group's
provisions and contingent liabilities related to the Fundão
tailings dam failure (including the Federal Public Prosecution
Office claim) are set out in the Group's financial statements for
the year ended 30 June 2023.
BHP Brasil is fully committed to supporting the
extensive ongoing remediation and compensation efforts in Brazil
through the Fundação Renova, which is a not-for-profit, private
foundation that was established following the Fundão tailings dam
failure to implement 42 remediation and compensatory programs in
Brazil.
Authorised for release by Stefanie Wilkinson,
Group Company Secretary.
Contacts
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Media
media.relations@bhp.com
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Investor Relations
investor.relations@bhp.com
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Australia and
Asia
Gabrielle Notley
+61 411 071 715
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Australia and
Asia
John-Paul Santamaria
+61 499 006 018
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Europe, Middle East and Africa
Neil Burrows
+44 7786 661 683
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Europe, Middle East and Africa
James Bell
+44 7961 636 432
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Americas
Renata Fernandaz
+56 9 8229 5357
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Americas
Monica Nettleton
+1 (416) 518-6293
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BHP
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