Vithanage Erandi Kawshalya Madhushani Jade Times Staff
V.E.K. Madhushani is a Jadetimes news reporter covering Business.
Landmark settlement aims to address environmental damage, community rebuilding, and long-term reparations after the catastrophic dam collapse.
In a historic agreement with the Brazilian government, mining corporations BHP and Vale have committed to a $30 billion settlement following the 2015 Mariana dam collapse, a disaster that devastated communities and ecosystems. Brazilian President Luiz Inacio Lula da Silva attended the signing of the settlement on Friday, underscoring the gravity of the environmental and human toll left in the tragedy’s wake.
The catastrophe occurred when the Samarco dam, owned by the joint venture between BHP and Vale, failed, releasing toxic waste and mud into the surrounding region. The incident led to the deaths of 19 people, forced hundreds from their homes, and left rivers and landscapes severely polluted.
President Lula remarked, “I hope the mining companies have learned their lesson; it would have cost them far less to prevent this disaster.”
Settlement Terms and Ongoing Legal Actions
The settlement designates 100 billion reais ($17.5 billion) for 20 years of reparations to local authorities, 32 billion reais for victim compensation and environmental restoration, and 38 billion reais already paid out by the companies for compensation and rebuilding. This funding will assist in the ongoing resettlement efforts, which include constructing a new town for one of the affected communities.
Despite this settlement, thousands of victims seek justice abroad, claiming delays and limited progress in Brazilian courts. Over 620,000 plaintiffs have taken BHP to court in the UK, seeking $47 billion in damages for the dam collapse. A separate group of 70,000 plaintiffs is pursuing a case against Vale in the Netherlands. Both companies deny liability in these international cases, arguing that they duplicate Brazil’s legal proceedings.
Long Road to Justice and Recovery
The 2015 disaster, one of the worst environmental crises in Brazil’s history, left many survivors waiting years for meaningful action. Though BHP and Vale previously committed to a $3.5 billion settlement in 2016, slow progress in Brazil’s judicial system led to renewed negotiations. Friday’s settlement covers the companies’ future obligations to assist in the recovery of affected people, communities, and ecosystems.
For communities still reeling from the environmental and personal losses, the settlement is a hopeful step toward repair and accountability.
