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Mining Giants Asked to Pay $9.7 Billion Over A Bad Dam Disaster in Brazil

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A judge in Brazil forced BHP mining giants to joint venture to pay $9.67 billion. It is for the damages caused by a dam burst in 2015. The collapse of the dam created a mudslide. There were 19 people dead in the mudslide.

Furthermore, this dam burst and polluted the Rio Doce River. Due to this, it compromised the waterway to the Atlantic Ocean. It needs to be clear how much damage the business had to repay.

Judge Cobucci states that the authorities accountable for the damages are liable. Some are emotional distress, which is mental health, while others are physical injuries. Furthermore, people have adjusted the money for inflation since 2015. The authorities use the state fund for projects and other initiatives in the dam area. The people affected by the dam breakdown will get reimbursements.

The ruling is a response to civil actions by the state and federal prosecutors. Vale said the BBC did not inform anyone of the passing. The business also states that the company has been paying compensation since December. So far, they have been paying out 34.7 billion reais. BHP responded later to responses from the BBC. Samarco also chose not to comment.

Vale Sued For Compensation

The ruling allows the businesses to appeal the compensation. In the end, the whole disaster in Minas Gerais amounted to 700 people. It is one of the worst environmental incidents in the country. When the dam exploded, thick, toxic red mud flooded the area. The mud destroyed the Bento Rodrigues village.

Furthermore, it also polluted the Rio Doce River and the Atlantic Ocean. It destroyed a lot of wildlife and tainted drinking water. Thousands of people consumed the water.

A report from 2016 states that the dam collapse was due to flaws in the design. The other technical report by Samarco states they should not get the blame for it.

Reasons Behind Dam Burst

Dams withholding the mining waste are full of sand and clay mixtures. The report states there is a change in the dam design. It meant less efficient water drainage, leading to a dam collapse in 2015.

The sand in the dam walls slowly became more saturated and liquified. A tiny earthquake on that day might be the reason the dam burst. These stats are from the report.

The whole disaster triggered scrutiny of other safety policies. It relates to the mining industry. BHP and Vale face lawsuits in the UK with more than 700,000 claimants. In 2019, tailings owed by Vale died similarly near Brumadinho, with 270 deaths.

The 2019 disaster is one of Brazil’s biggest environmental tragedies. Right after noon, the dam collapses. There is a torrent of mining waste to destroy a large rural area of Minas Gerais. It was flowing at 80 km/h, and it destroyed everything. There were many dead Vale workers and victims that were missing. After that, Gerais Governor Zeema paid the state $7 billion. They said it is America’s most extensive reparation package.

Zeema Releasing Compensation for Dam Burst

Zeema stated that the settlement is not going to affect criminal or civil claims. Although there is a settlement, it cannot solve the human and environmental damage. Vale did a complete repair of the damage. The business continues to contribute to improving communities. Zema said the funds will strengthen the economy and environment. Machado, a victim, said that nothing will help him recover from this disaster. Many dreams died in this incident.

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