Foreign News

Brazilian Federal Court Orders $9.67 Billion Compensation from Builders for 2015 Dam Collapse

By Sahan Rathanasekara

January 26, 2024

A Brazilian federal court judge has ordered Samarco Ore, a joint venture between mining giants BHP and Vale, to pay US$9.67 billion in damages for a deadly 2015 dam burst.

The collapse of the Fundão Dam in southeastern Brazil triggered a massive landslide that killed 19 people and severely polluted the Rio Dos River. With this situation came severe environmental damage.

The judge announced his decision and stated that apart from the physical damages, these companies are also responsible for the emotional distress faced by the victims of the incident.

Accordingly, the judge added that this compensation amount will be adjusted for inflation from 2015 and the money received from the compensation will be used in a state fund for restoration projects in the area affected by the collapse of the dam.

More than 700 people were displaced by the collapse of this dam, and it is one of the biggest environmental disasters in Brazil. Investigations into the accident revealed that defects in the construction and design of the dam were the cause of the accident.

Meanwhile, another bridge built by these companies collapsed in 2019, killing 270 people.