Brazil Secures $23 Bln Settlement over Mining Dam Collapse

In a historic environmental settlement, mining corporations BHP and Vale agreed to pay nearly 132 billion reais ($23 billion) to Brazil in reparations for Mariana's devastating 2015 dam collapse.

This incident, regarded as one of Brazil’s worst environmental disasters, caused a mudslide that claimed 19 lives, displaced hundreds, and contaminated the Doce River’s extensive ecosystem.

Of the settlement, 100 billion reais will be allocated to new resources, with a 20-year payment schedule to Brazilian authorities, while 32 billion reais will fund resettlement and compensation for 300,000 impacted individuals. The first payment, set at 5 billion reais, is due within 30 days.

The Samarco mine, a Vale and BHP joint venture, released toxic sludge equivalent to 13,000 Olympic-sized pools, damaging habitats along the Doce River up to the Atlantic.

Despite previous agreements, the Brazilian government pursued further negotiations, citing the companies’ failure to uphold prior commitments.

More than 620,000 plaintiffs, including Indigenous communities, are also pursuing a £36 billion case in London’s High Court.

President Luiz Inácio Lula da Silva, who marked the signing in Brasília, framed the settlement as a significant step in environmental justice, underscoring the need for corporate responsibility to prevent such disasters.