By Adam Whittaker


BHP Group said it intends to appeal a decision by the English High Court that said it is liable for the deadly collapse of a dam in Brazil 10 years ago.

The ruling could expose the Australia-based miner to additional costs just a few years after it agreed in a settlement to pay billions of dollars in compensation to victims of the 2015 collapse of a mine-waste dam near the Brazilian town of Mariana. The failure triggered a mudslide that killed 19 people and polluted more than 400 miles of rivers.

Any potential damages will be determined in later trials that are expected to be completed in 2028 or 2029, BHP said. Around 240,000 claimants in the U.K. have already been compensated under the Brazilian agreement, which should reduce the size and value of any future settlement, BHP said.

BHP said it will challenge the ruling, and that the legal action taking place in the U.K. seeks to replicate remediation and compensation that has already been established in Brazil under a separate agreement.

The dam that collapsed was owned and operated by Samarco, a iron-ore mining joint venture between BHP Brazil and Vale. Prosecutors in Brazil said management missteps and failed oversight led to the breakdown of the dam structure.

Under the 2024 Brazil agreement, BHP, Vale and Samarco agreed to pay $32 billion to settle key claims in relation to the failure.

The company said Friday that expected cash outflows relating to Samarco remain largely aligned with previous guidance of $2.2 billion in 2026 and $500 million in 2027.

According to the court statement, BHP was liable for the disaster on the basis that it is a "polluter" under Brazilian environmental law and at fault under the Brazilian civil code.

"As a polluter, BHP are strictly liable for damage caused to the environment and to third parties by the collapse of the dam," the court said. However, the miner wasn't in breach of its duties and responsibilities as a controlling shareholder in Samarco, it said.


Write to Adam Whittaker at adam.whittaker@wsj.com


(END) Dow Jones Newswires

11-14-25 0637ET