Diversified major BHP has agreed to pay A$110-million to settle an Australian shareholder class action linked to the 2015 Fundão Dam failure at Samarco in Brazil.
The action, launched in 2018, covered investors who bought shares in BHP Group Limited or BHP Group Plc (now BHP Group UK) between August 2012 and November 2015. It alleged shareholders suffered losses following the collapse of the dam, which was operated by Samarco, a joint venture equally owned by BHP Brasil and Vale.
The Fundão disaster killed 19 people, displaced hundreds and caused widespread environmental damage along the Doce river system. Samarco resumed operations in 2020 on a restricted basis and continues to be the subject of legal proceedings and remediation obligations in Brazil.
The settlement, which remains subject to Federal Court approval, is inclusive of interest and costs. BHP said on Tuesday that there was no admission of liability and that it expected to recover most of the payout through insurance.