BHP shares retreat over Brazil court decision
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More news: Shares in BHP are down 1.6% to $46.77 in early trading on the ASX after a Brazilian court ordered the resources giant, Brazil's Vale and their joint venture Samarco to pay 47.6 billion reais ($14.7 billion) in part damages for a 2015 tailings dam burst. BHP, which made a provision of US$3.7 billion in its FY2023 accounts for the matter, said it is reviewing the court order.
BHP to review Brazil court ruling on Samarco tailings dam disaster
The news: BHP says it will review the implications and potential impact of a Brazil court’s decision regarding claims against its Samarco joint venture with Vale, over a 2015 dam collapse.
The numbers: A Brazilian federal judge ruled Vale, BHP and Samarco must pay 47.6 billion reais ($14.7 billion) in part damages for the 2015 tailings dam burst, Reuters reported on Friday. BHP had made a provision of USD3.7 billion in its FY2023 accounts in relation to the dam failure.
The context: BHP said in a statement to the ASX on Monday that it has not yet been served with the decision by the court, but will review the possibility of appeal and the potential impact from the ruling, which sought early payment of collective moral damages, one part of the total 155 billion Brazilian reais claim against the miners. The 2015 collapse of the Fundao dam in southeastern Brazil, owned by the Samarco venture, killed 19 people and caused a giant mudslide that uprooted homes and villages and triggered Brazil's worst environmental disaster.
The sources: ASX announcement, Reuters
